What term describes a mortgage that is also referred to as a second mortgage?

A junior mortgage is a term used to describe a mortgage that is subordinate to a primary mortgage on a property. It is often referred to as a second mortgage because it typically comes after the primary or first mortgage in the hierarchy of debt. In the event of a foreclosure, the primary mortgage must be repaid in full before any funds are applied to the junior mortgage. This subordination means that junior mortgage lenders take on more risk compared to primary mortgage lenders, which is reflected in potentially higher interest rates or different terms. Understanding this classification is important for assessing the financial structure and obligations tied to a property.