Tuesday, December 6th 2016


What is loan subordination?

Interesting Question?   (3)   (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 | 499 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
Which banks offer the highest term deposit rates in Israel?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Which banks offer the highest term deposit rates in Israel?
Unanswered Questions in Finance
What are different types of house loans?
What is loan sharking?
What is the role of equity accounts in raising capital?
What is homepath renovation mortgage financing?
Can i get a loan with no credit?

Answered Questions in Finance
How to finance land?
What is a subprime lender?
How to finance a film?
Where can i get a prepaid debit card?
What is debt financing?
Ask A Question
Get opinions on what you want to know:
Specific to any country?