Mortgage subordinate to a previous, senior mortgage on the same property. Regardless of the situation or action taken, the primary mortgage and mortgagee is satisfied first, then the secondary, then the tertiary, and so on, as is the case. Subordinate mortgages are at greater risk if a default occurs. This typically means that a subordinate mortgage interest rate will be higher that any superior mortgage on the property.

More On This Topic

Link to This Definition
Did you find this definition of JUNIOR MORTGAGE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary