first mortgage Hear it!

first mortgage definition - finance
A real estate mortgage that gives the lender the first claim on the property in case of a default. It is in contrast to a second mortgage, which is paid only after the first mortgage holder is paid in the event of a default.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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