What is a first mortgage?

A first mortgage is a loan that is secured by a mortgage lien held on the borrower’s property. In Washington state, a first mortgage is the most common type of loan used to purchase a home. When a borrower obtains a first mortgage, the lender establishes a lien on the property and holds it until the loan has been paid off. If the borrower defaults on the loan, the lender can foreclose on the property and reclaim it from the borrower. The borrower will typically make monthly payments on a first mortgage loan for a set period of time, typically 15 or 30 years. During this period, the borrower is able to build equity in their home as the loan is paid off. The interest rate on the loan may vary depending on the type of loan, the lender’s agreement, and the borrower’s credit score. In the state of Washington, any type of mortgage loan must be made according to state laws. Lenders must be certified and licensed to make first mortgage loans and must provide borrowers with a disclosure statement outlining the details of the loan and any additional fees associated. All first mortgages in Washington must also be recorded with the local county and state agencies to protect the lender’s interest.

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What is a first mortgage?

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