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second mortgage definition - finance
A mortgage on real estate that already has a first mortgage on it. In the event that the borrower defaults on payment, the original mortgage will be paid first out of any liquidation proceeds. A second mortgage may be an equity line of credit.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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