Definition
A loan secured by a property that is subordinate to the first mortgage in priority.
Example
The second lien covered the gap between the conforming first mortgage and the purchase price.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Second Mortgage mean in real estate?
A loan secured by a property that is subordinate to the first mortgage in priority.
How is Second Mortgage used in practice?
The second lien covered the gap between the conforming first mortgage and the purchase price.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.