first mortgage


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First mortgage

A type of mortgage that through a lien gives precedence to the lender of the first mortgage over all other lenders in case of default.

First Mortgage

A mortgage on a property in which the lender has the right to full payment before any other lenders or liens on the same property are paid. That is, if the borrower defaults on the mortgage, the lender of the first mortgage has first right to the property and other lenders using the same property as collateral may only use it after the first lender has been fully satisfied. Generally speaking, first mortgages carry lower risk for lenders than other mortgages.

first mortgage

A real estate loan with the right to payment in full before payments to other lenders are made. First mortgages are generally considered low-risk investments, although the quality of real estate pledged as collateral is of crucial importance in determining the riskiness of the mortgage.

first mortgage

A real estate loan made to the borrower and recorded in the public records by the lender,before any other mortgages.

First Mortgage

A mortgage that has a first-priority claim against the property in the event the borrower defaults on the loan.

For example, a borrower defaults on a loan secured by a property worth $100,000 net of sale costs. The property has a first mortgage with a balance of $90,000 and a second mortgage with a balance of $15,000. The first mortgage lender can collect $90,000 plus any unpaid interest and foreclosure costs. The second mortgage lender can collect only what is left of the $100,000.

References in periodicals archive ?
A $2 million first mortgage and $500,000 line of credit for 215 Equities Corp.
202,727,726 Health and Educational Facilities Board of the City of Johnson City, TN hospital first mortgage revenue and refunding bonds (Mountain States Health Alliance) series 2000A (certain maturities are insured by MBIA Insurance Corp.
345,000 first mortgage on a 3 story 5 unit residential building in the Williamsbridge section of the Bronx.
A $4 million first mortgage for Highland Terrace Housing Development Fund Corporation, a 96-unit co-op at 101 Highland Avenue in Yonkers, NY;
203,087,934 Health and Educational Facilities Board of the City of Johnson City, TN hospital first mortgage revenue and refunding bonds (Mountain States Health Alliance) series 2000A (certain maturities are insured by MBIA Insurance Corp.
5 million first mortgage at a 42-unit co-op at 302 Convent Avenue, Manhattan;
3 million first mortgage for 200 Diplomat Drive Corporation, a 224-unit co-op located at 100-200 Diplomat Drive in Mount Kisco, NY.
In a piggyback structure, the first mortgage is a loan covering 80 percent of the property's value, often at a fixed rate, but increasingly at an adjustable rate.
5 million in loans during September, including the largest deal of the month, a $15,5 million first mortgage and a $1 million line of credit for The Birchwood Glen, a 363-unit co-op located at 14 Glen Hollow Drive in Holtsville, NY.
30 /PRNewswire/ -- Continued strong demand for home loan refinancing should fuel continued strong earnings for First Mortgage Corp.
The rating is the same as that of PEPCO's outstanding secured first mortgage bonds.
5 million first mortgage and a $100,000 line of credit for a 143-unit co-op located at 63-33 98th Place in Rego Park, N.