What is a first mortgage?
A first mortgage is any lien that is placed on the title of a property in the first position. Typically when you first purchase a home you take out a mortgage. This is your first mortgage not because it is the first loan you took out on the house, but is now in the first lien position on your title.
A home or property can have more than one loan or lien. Mortgage loans are registered with the appropriate county or city registry, and the loan that is registered first is considered the first mortgage. A mortgage that is registered second is considered a second mortgage. It is also possible to have a third or fourth mortgage on a home or property. However, these situations are less frequent than first and second mortgages. Often, a person will secure a first mortgage and then go on to obtain a second mortgage in the form of a home equity loan. The terms of second mortgages may vary, as can those of first mortgages. Often, the loan repayment period is up to 30 years. On some second mortgages, however, the repayment schedule is much shorter than with first mortgages, and some require payment just one year after funding. A mortgage is a loan a person applies for in order to get funds for buying a home or another type of real estate. Many people are unaware that there are different types
