Definition
The primary loan secured by a property, with first claim on the asset if you default. It's the top priority in the property's loan hierarchy—the alpha predator of mortgages.
Example Usage
Our bank held the first mortgage, so they got paid before the home equity line holders.
Origin
From property law hierarchy dating back to English common law
Fun Fact
In a foreclosure, the first mortgage gets paid first, which is why second mortgage holders often lose money
Source: Banking and lending standards
Related Terms
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See “First Mortgage” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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