Junior Mortgage

Definition: A junior mortgage is subordinate in priority to another mortgage on the same property.

Example

A second or third mortgage is junior to the first mortgage.

Keep the distinction clear

Junior is a broader category than second. Priority affects how available foreclosure proceeds are distributed; it does not erase the borrower's contractual debt.

Related terms

First Mortgage · Second Mortgage · Subordination Agreement

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: CFPB: mortgage key terms

Pronunciation (US): JOON-yer MOR-gij (capitals show stress)

Pronunciation reference: Merriam-Webster