second mortgage

second mortgage definition - business

second mortgage

A real estate mortgage with a subordinate claim to another mortgage on the same property. The second mortgage is more risky to the lender than the first mortgage; thus, it carries a higher rate of interest. Also called piggyback loan. See also soft second loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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