Other Meanings

• The contemporary French call it a hypothèque.French Village image by Bailey from Fotolia.com
  
  Although the root meaning of mortgage is the lender's interest in the secured property, the word is also sometimes used to describe the document that establishes that interest, more fully called a "mortgage deed." Sometimes, too, the word "mortgage" is used loosely to refer to the loan itself.
  
  

Second Mortgages

• Many properties in the contemporary real estate market have two mortgages, denominated as "first" and "second."
  
  

Refinancing

• College tuition is one common reason for a second mortgage loan or refinancing.college's building image by Leonid Tarassishin from Fotolia.com
  
  Homeowners apply for second mortgage loans for a variety of reasons: to finance home improvements, educational expenses or debt consolidation. Since the second mortgage loan typically comes with a higher interest rate than the first, refinancing is often a better option since it creates a renegotiated first mortgage.
  
  

Transferability

• In most common law jurisdictions, the mortgagor (borrower) and mortgagee (lender) generally have the right to transfer their interest in a mortgage.
  
  

Due on Sale

• Transfers subject to a mortgage are rare, though, because contracts typically include due-on-sale clauses, which require immediate payment upon the sale of the home to the lender.