First Mortgage for Dummies
noun
What does First Mortgage really mean?
Hey there! So, let's talk about what a "first mortgage" is. Imagine you want to buy a house, but you don't have enough money to pay for it all at once. So, you go to a bank and ask for a loan. When the bank says yes, you essentially are entering into an agreement with them to borrow a certain amount of money to buy the house. This agreement is called a mortgage. The "first" part comes in because it's the initial loan that you take out to buy the property.
Basically, a first mortgage is a loan that you take out to buy a home or other real estate property. It's called "first" because it has priority over any other loans or mortgages that you might take out on the same property later on. This means that if for some reason you can't pay back the loan and the bank has to take back the house, they get the first claim on the property to recoup their money.
To put it in another way, think of a first mortgage as being first in line at a concert. You were the first one to get your ticket, so you have the best spot in the front row. Other people might come later and try to get closer, but they can't because you were there first. In the same way, a first mortgage has the first claim on the property because it was the first loan that was taken out to buy it.
So, in a nutshell, a first mortgage is the initial loan that you take out to buy a property, and it has priority over any other loans on the same property. It's like being first in line at a concert, you get the best spot!
Basically, a first mortgage is a loan that you take out to buy a home or other real estate property. It's called "first" because it has priority over any other loans or mortgages that you might take out on the same property later on. This means that if for some reason you can't pay back the loan and the bank has to take back the house, they get the first claim on the property to recoup their money.
To put it in another way, think of a first mortgage as being first in line at a concert. You were the first one to get your ticket, so you have the best spot in the front row. Other people might come later and try to get closer, but they can't because you were there first. In the same way, a first mortgage has the first claim on the property because it was the first loan that was taken out to buy it.
So, in a nutshell, a first mortgage is the initial loan that you take out to buy a property, and it has priority over any other loans on the same property. It's like being first in line at a concert, you get the best spot!
Revised and Fact checked by Michael Davis on 2023-11-15 11:47:06
First Mortgage In a sentece
Learn how to use First Mortgage inside a sentece
- When someone is buying a house, they might take out a first mortgage from a bank to help pay for it. This means the bank gives them money to buy the house, and in exchange, the person promises to pay back the money, plus interest, over a period of time.
- If a person wants to start a business, they might use their house as collateral to get a first mortgage to help fund the business. This means the bank gives them money based on the value of their house, and if they can't pay it back, the bank can take their house as payment.
- When a city government wants to build a new library, they might take out a first mortgage to finance the construction. This means they borrow money from a bank to pay for the building, and then gradually pay it back with tax money from the citizens.
- A young couple might get a first mortgage to buy their first home together. This means they get a loan from a bank to help them pay for the house, and then they make monthly payments to the bank over many years until the loan is fully paid off.
- A company might take out a first mortgage to buy a new office building for their business. This means they get a loan from a bank to cover the cost of the building, and then they make regular payments to the bank over time to repay the loan.
First Mortgage Hypernyms
Words that are more generic than the original word.