first mortgage

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.

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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.

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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.

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first mortgage

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

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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.