What is a first mortgage?

A first mortgage is a type of mortgage loan under Pennsylvania law that has priority over any other mortgage loans that may have been taken out against the same property. This means that if the borrower defaults on the loan, the lender for the first mortgage would have the first right to be repaid out of the proceeds of the property’s sale. In other words, the lender of the first mortgage would be the first in line to receive any proceeds from the sale of the property, and ahead of any other lenders of subsequent mortgages taken out against the same property. A first mortgage is secured by a deed of trust or a mortgage on the property that serves as collateral for the loan. This means that if the borrower does not make payments on the loan, the lender has the right to foreclose on the property and sell it in order to get their money back. In Pennsylvania, the foreclosure process and the laws that protect homeowners are put in place by the Commonwealth of Pennsylvania. In addition to having priority over any subsequent mortgages, a first mortgage loan often carries a lower interest rate and may require less money up front. This can make it a favorable option for borrowers who are trying to acquire a real estate property.

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What is a first mortgage?

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