Resources > Glossary > Subordination

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Subordination

Phonetics: sub-or-di-na-tion    \'sə-bȯr-də-nā-shən\

Function: noun

Definition 1:
If you are refinancing your first mortgage and have an existing second or home equity line, one could "subordinate" the second mortgage: request that your second mortgage holder go back into the second lien position when you replace your existing first mortgage with the new refinance loan. The Subordination Agreement is the document used for this purpose. The Subordination Agreement always needs to be notarized and recorded with the county recorder.