first mortgage investment & finance definition
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.
See first mortgage in Wall Street Words
A real estate loan with the right to payment in full before payments to other lenders are made. First mortgages are generally considered low-risk investments, although the quality of real estate pledged as collateral is of crucial importance in determining the riskiness of the mortgage.
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