What term is used for a mortgage that is subordinate to other mortgages recorded against a property?

The term that describes a mortgage which ranks below other mortgages recorded against a property is commonly referred to as a junior mortgage. This designation indicates that in the event of foreclosure or default on the property, the holders of junior mortgages will only receive payment after senior (or primary) mortgage holders have been paid in full. The junior mortgage represents a higher risk for lenders because it has less claim to the property's collateral in the case of default.

While the terms "second mortgage" and "subordinate mortgage" are often used interchangeably with junior mortgage, the most widely recognized terminology in financial and legal contexts is the junior mortgage. The other terms may have specific uses or connotations, but when directly addressing the hierarchical nature of mortgages, "junior mortgage" is the correct and most precise term to signify that it is subordinate to other encumbrances.