First Mortgage

A first mortgage is the primary loan taken out to purchase a property, secured by the property itself. It has priority over any subsequent mortgages or liens, meaning it must be repaid before other claims in the event of foreclosure. First mortgages typically have lower interest rates compared to second mortgages due to their primary lien position. 

While managing loans, understanding first mortgages is essential for evaluating loan-to-value ratios and prioritizing repayment strategies, which helps in effectively managing property financing and associated risks.