What type of mortgage is recorded after the first mortgage and is subordinate to it?

A second mortgage is recorded after the first mortgage and is subordinate to it. This means that in the event of foreclosure, the first mortgage lender has priority over the second mortgage lender regarding the repayment of debt.

Second mortgages allow homeowners to borrow against the equity accumulated in their home while still holding a primary mortgage. Because the second mortgage carries a higher risk for lenders—being subordinate to the first mortgage—they typically have higher interest rates compared to first mortgages. This subordination means that if the property is sold or foreclosed upon, the first mortgage must be paid off in full before any proceeds can be applied towards the second mortgage.

In contrast, a first mortgage is the primary home loan that is taken out, while reverse mortgages are specifically designed for seniors to convert home equity into cash without monthly mortgage payments. A home equity line of credit (HELOC) is a revolving credit option that also allows homeowners to borrow against their home's equity but may or may not be subordinate.