In real estate finance, a First Mortgage is a mortgage that has priority over all other voluntary liens on a property. This priority generally means that the first mortgage must be paid off before any subordinate mortgages or liens if the property is sold or foreclosed.
Priority is usually determined by the order in which mortgages are recorded in the public records, with the earliest recorded lien taking precedence. Because of its superior position, a first mortgage typically carries lower risk for the lender and may offer more favorable loan terms to the borrower.
