DEFINITION of 'Coterminous'

A suppplemental loan with a maturity that is the same as the senior, or original, loan. Coterminous is most often used to describe mortgage loans, such as those for residential and commercial borrowers.

BREAKING DOWN 'Coterminous'

While a supplemental loan can have a maturity date that occurs after that of the original loan (often called "non-coterminous"), most second mortgage lenders or mezzanine lenders prefer to have both loans mature on the same date. This way, the borrower can choose to refinance both loans into one larger one, preferably with the same lender.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Fannie Mae - Federal National Mortgage ...

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  3. Second Mortgage

    A type of subordinate mortgage made while an original mortgage ...
  4. Senior Debt

    Borrowed money that a company must repay first if it goes out ...
  5. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used ...
  6. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) ...
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    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
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