second mortgage
Definition
Loan secured by the home owner's equity (market value of the property less balance on the first mortgage) in a property that is already mortgaged. Second mortgages are junior (subordinate) to the first mortgage and, in case of a foreclosure sale, are paid out only after the full satisfaction of the first mortgage. Both mortgages run concurrently and, typically, the second mortgage has shorter maturity period than the first one.
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