Wednesday, May 25th 2016

Question

What is loan subordination?

Interesting Question?   (2)   (9)



Answers (1)

18th Nov 2009 by JonB

a subordinated loan is a loan that is in position behind another loan. This means that, in the even of a default, a subordinated loan will be paid off only when the loan in first position is paid off completely. The most common form of subordinated loan is a second mortgage. Called a second because it is in second position behind the first. Typically, subordinated loans are for much smaller amounts and carry much higher interest rates. Seconds, thirds, HELOCS are all examples of subordinated loans.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



17th Nov 2009 In Finance 1 Answers | 373 Views
Subjects: loan subordination,

Answer This Question / Give Your Opinion
What is loan subordination?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What is a Non-conforming home loan?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is a Non-conforming home loan?
Unanswered Questions in Finance
How to finance a ring?
What is a par loan?
How does debt consolidation work?
What is formula funding?
What is lender financing?

Answered Questions in Finance
What is the difference between debt and equity financing?
What is an Equity Loan
What debt to pay first?
What is a business angel?
What is loan origination?
Ask A Question
Get opinions on what you want to know:
Specific to any country?