   
|
|
|
|
|
|
| |
A junior mortgage is a mortgage that is subordinated to some other mortgage or lien. Subordinated debt such as a junior mortgage is paid after unsubordinated, or senior, debt. The junior mortgage is sometimes called a second mortgage. The senior mortgage is called the first mortgage. It is possible for a property to have more than one junior mortgage. If a second mortgage already exists, the next junior mortgage would be called the third mortgage and be subordinated to both the first and second. A junior mortgage has a higher risk of default, and this risk is usually offset by a higher interest rate. Sometimes a junior mortgage and first mortgage can be consolidated through refinancing to lower the cost of borrowing by eliminated subordinated debt.
Rate this junior mortgage definition...
|
|
|
|
 |
Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day. |
|
Popular Terms: in escrow, stock split, deferred revenue, implied volatility, cancelled check, FICO score, wholly-owned subsidiary, required rate of return, phantom income, 401a, risk management, average price per share, annual return, margin rate, 144a, ex-dividend, 1031 exchange, ex-dividend date, class C shares, covered put, liquidity ratio, retained earnings, debt service coverage, VIX, current ratio, open position, diluted share, option premium, balance sheet, limit order, deferred tax, inflation, reverse mortgage, 1035 exchange, FTSE, LIBOR, per diem, dividends payable, stock market close, irrevocable trust, Key Rate Duration, APR, real GDP, EBITDA, minority interest, labor relations, Zero Cost Collar, quality assurance, command economy
|
|
| |
