How Do You Spell FIRST MORTGAGE?

1. A first mortgage is a legal agreement and financial instrument that establishes a primary lien on a property in order to secure a loan. It is typically obtained when purchasing or refinancing a property. The term "first" refers to the priority of the mortgage lien, indicating that it takes precedence over any other liens or claims on the property.

   In this context, the borrower, also known as the mortgagor, enters into an agreement with a lender, or mortgagee, to receive a loan. The lender provides funds that are used to acquire the property, and in return, the borrower grants the lender a first lien on the property. This lien gives the lender the right to foreclose on the property and sell it to recover any outstanding debt if the borrower defaults on the loan.

   A first mortgage is recorded in public records, ensuring clarity for future potential lenders or buyers. It serves as a legal document that specifies the mortgage terms, such as interest rate, repayment period, and any additional conditions. The borrower agrees to make regular mortgage payments according to the agreed-upon terms until the loan is fully repaid.

   First mortgages are generally considered less risky for lenders as they have a higher claim on the property compared to secondary mortgages or other forms of debt. Therefore, borrowers often receive more favorable interest rates and terms when securing a first mortgage.

Common Misspellings for FIRST MORTGAGE

The word "first mortgage" is derived from Old French. The term "mortgage" originated from two Old French words: "mort" meaning "dead" and "gage" meaning "pledge". In medieval times, a mortgage was a pledge of property that became void when the debt was paid or when the borrower died.

The word "first" in "first mortgage" refers to the priority of the loan in relation to other mortgages on the same property. In cases where there are multiple mortgages on a property, the first mortgage is the primary lien and takes precedence over any subsequent mortgages or loans. The term "first mortgage" developed to distinguish the primary mortgage from any others that may exist.

Similar spelling words for FIRST MORTGAGE

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