Primary lien on a property
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What is the first mortgage definition?
First Mortgage Definition. If the property is sold or if the borrower defaults, the first mortgage is paid before any other mortgage lien on the property. Usually, the loan used to purchase the property is secured by the first mortgage. When you obtain a mortgage loan you will sign a promissory note, or a promise to repay the amount borrowed,…
What is a first mortgage lien?
A first mortgage is the primary lien on a property. A first mortgage is the primary loan that pays for the property, and the loan has priority over all other liens or claims on a property in the event of default. A first mortgage is not the mortgage on a borrower鈥檚 first home; it is the original mortgage taken on any one…
What is a mortgage loan?
Home Mortgage Learn About Mortgages Mortgage Glossary What is a Mortgage Loan? A mortgage loan is a loan secured by real estate owned by the borrower, in which the borrower grants the lender a lien, or mortgage, against the property.
What is an example of a first priority 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.