Second mortgage Meaning and Definition

Pronunciation

/ˈsɛkənd ˈmɔr.gɪdʒ/ 🔊

Part of Speech

Noun

Definition

A second mortgage is a loan that allows a homeowner to borrow money using their property as collateral, in addition to an existing primary mortgage.

Examples

• The couple took out a second mortgage to fund their child’s education.
• They decided to use their home’s equity to secure a second mortgage and pay off their debts.

Synonyms

• Home equity loan
• HELOC (Home Equity Line of Credit)

Antonyms

• Major retirement plan
• Emergency fund

Additional Information

A second mortgage can be used to finance home improvements, consolidate debt, or cover unexpected expenses. However, it’s essential to carefully consider the risks and benefits before making a decision, as it can increase the risk of foreclosure if not managed properly.

Second mortgages often have higher interest rates and fees compared to primary mortgages, and may also have stricter repayment terms.

Etymology

The term “second mortgage” originated in the late 19th century, when lenders began offering secondary loans to homeowners who already had a primary mortgage.

Usage Notes

When using the term “second mortgage” in a sentence, it’s essential to clearly define the context and purpose of the loan.

Cultural References

The concept of a second mortgage has been featured in various media, including films, television shows, and literature.

Idiomatic Expressions or Phrases

You can’t get blood from a stone (meaning: it’s impossible to borrow money from someone who has no credit or collateral).

Related Words or Phrases

Mortgage, home equity, collateral, interest rate, repayment terms.

Collocations

Take out a second mortgage, use a second mortgage, pay off a second mortgage, refinance a second mortgage.

Frequency of Use

Second mortgages are commonly used by homeowners who need access to additional funds, but the frequency of their use can vary depending on market conditions and individual circumstances.

Common Misspellings

Seond mortgage, scond mortgage, secound mortgage.