Mortgage with first-priority claim on a property, typically the senior lien that gets paid before junior mortgages after foreclosure.
A first mortgage is the mortgage with first-priority claim on a property. If the borrower defaults and the property is foreclosed, this lender gets paid before junior mortgage holders.
In practical mortgage language, senior mortgage and primary mortgage usually point to the same top-priority loan position.
First-mortgage status matters because repayment priority lowers lender risk. That usually supports lower rates, larger loan amounts, and better terms than a subordinate mortgage would receive.
For borrowers, it is the baseline mortgage relationship. For other lenders, it is the claim that everyone else on the property has to stand behind.
The first mortgage is usually the original purchase loan or the refinanced loan that keeps the top lien position after the prior debt is discharged.
| Mortgage position | Claim on sale proceeds | Typical pricing effect | Common use |
| — | — | — | — |
| First mortgage | Paid before junior liens | Lowest risk, often lowest rate | Main purchase or refinance loan |
| Second mortgage | Paid after the first mortgage | Higher risk, often higher rate | Equity extraction or layered financing |
| Junior mortgage | Paid after senior claims | Risk rises as priority drops | Broad category including second and third liens |
A buyer purchases a home with a bank mortgage used to fund most of the purchase price. Later, the owner adds a home equity loan. In foreclosure, the purchase mortgage gets paid first because it is the first mortgage.
A first mortgage is a mortgage-specific claim. A First Lien is the broader secured-credit idea that can apply outside mortgages too.
Replacing the old loan does not automatically turn the new loan into a junior claim. If the old first mortgage is paid off and the replacement loan is recorded correctly, the refinanced mortgage can remain first in priority.
Second Mortgage: A subordinate mortgage that stands behind the first mortgage in repayment order.
Junior Mortgage: The broader category for mortgages that rank below a senior mortgage.
Loan-to-Value Ratio: A core underwriting measure often used when sizing a first mortgage.
Foreclosure: The enforcement process that makes mortgage priority economically important.
Wraparound Mortgage: A structure that can leave an older first mortgage in place under a new seller-financed note.