2nd mortgage Meaning and Definition

Pronunciation

/ˈdʒwendθ ˈmɔrćeɪdʒ/

Noun

A secondary or supplemental loan secured by property, ranking behind a first mortgage in the event of foreclosure.

The term “2nd mortgage” originates from the practice of securing a loan with a secondary interest in a property, subordinate to a primary mortgage.

2nd mortgages are often used to consolidate debt, fund home renovations, or finance a business venture.

2nd mortgages have been mentioned in various TV shows and movies, such as “The Real Housewives of Orange County” and “The Wolf of Wall Street.”

“Taking on debt” or “putting money into a 2nd mortgage” are common idioms used to describe securing a supplementary loan.

The term “2nd mortgage” is commonly used in financial and real estate contexts, with an average frequency of 400-500 mentions per month.