Subordinate Financing


Definition of "Subordinate Financing"

Christine Downing-Hughes
  Keller Williams / Exemplary Real Estate

A second mortgage on a property that is not paid off when the first
mortgage is refinanced. The second mortgage lender must allow subordination of the second to the new
first mortgage.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Nonvalued Insurance Policy

Policy under which the insurer will pay the actual cash value of the property at the time the proper ...

Expiry

Point in time when a term life insurance policy terminates its coverage. ...

Incorporeal Property

Legal property rights that don not include possession. Examples of incorporeal property rights are a ...

Law Of Large Numbers

Mathematical premise stating that the greater the number of exposures, (1) the more accurate the pre ...

Character

Credit standard judging the borrowers historical record of paying loans, among other considerations ...

Acceleration Clause

A contractual provision that gives the lender the right to demand repayment of the entire loan bala ...

Related Real Estate FAQ

What Is A Negative Amortization?

A negative amortization is a type of loan situation that occurs when the monthly payments do not cov ...

What Do I Need To Know About Watercraft Insurance?

You need separate coverage for the variety of risks you face when storing, launching, hauling or run ...

What Is Flood Insurance?

Flood insurance is insurance that compensates for the physical property damage resulting from rising ...

What Is An Interest Rate?

An interest rate is the percentage the lender charges you for borrowing money. ...

What Is A Closing?

The process of finalizing all the dealing associated with the sale and purchase of a home. (Also kno ...

Why Do People Refinance?

People finance to obtain a new loan in order to pay off the existing mortgage or to gain access to t ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Top Five Reasons Your Home Offer was Rejected 5 U.S. Cities with the Best Public Transportation Is it better to buy or sell a home first 6 Reasons you are not selling properties Tax Breaks for the First Time Home Buyer

FAQ

What is a sales contract? What is a Buildable acre? What is a fixed-rate mortgage? What is an easement? What is a FHA mortgage?