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What Is A First Mortgage? What You Need To Know

If youve ever heard the term first mortgage,” and been confused about what it means – and what a second mortgage” would be, youve come to the right place. In this guide from CSMC Mortgage, well talk about the basics of first mortgages, and in which scenarios you may have multiple mortgages on a piece of property. Read on to get all the details.

The First Mortgage Is Your Primary” Mortgage

Your first mortgage (or lien) can be thought of as your primary” mortgage loan. This loan is the original loan that you used to purchase your property. Most home buyers will only ever have a single mortgage on their property. However, there are some scenarios (which well discuss in the below section) that may lead to you having two mortgages on your home.

In the event that you default on your loan payments, the lender for your first or primary” mortgage is also first in line to foreclose on your home and sell it to repay the loan balance. The lender who provided your second mortgage will only be able to claim repayment after the first mortgage lender has done so.


Why Would I Have More Than One Mortgage?First Mortgage

There are two common scenarios in which you may have two mortgages on your home. Lets discuss them now.

How Else Do Second Mortgages Differ From First Mortgages?

Second mortgages are treated differently than first mortgages for the mortgage interest tax deduction. Up to certain limits, you can write off the interest for your first mortgage on your taxes.

However, this is not usually possible with a second mortgage, unless the money was used to buy, build, or substantially improve? The home.

Second mortgages are also riskier for lenders. Because the first mortgage lender has the primary claim to the property, the lender providing the secondary mortgage has a higher risk of losing money if you default and stop paying your mortgages. Because of this, interest rates are usually higher for second mortgages, as this helps minimize risk for the lender.


Need More Information About Mortgages? Contact CSMC Mortgage Today!

Navigating the world of mortgages and real estate can be difficult on your own. So if you have more questions about first or second mortgages and require guidance, CSMC Mortgage is here to help. Contact us online or give us a call at (805) 212-7710
for more information, and feel free to browse our blog for more information, tips, and news!


First Mortgage

“Laura Hertz is the best lender I've ever worked with in my 25 years as a Realtor. I never have to worry that she has things handles and she always performs in the best way possible. I also know that she is an advocate for my buyers and not only does she meet their expectations but she exceeds them! She is my lender for life!”

- Paula K.

“ My experience is always fantastic & seamless. Mayen Grigorian is a true professional. He’s honest, he goes above and beyond, he’s efficient, always available and knowledgeable. I never have to call for updates he beats me to it and sends updates regarding the loan. Our clients are very happy and we’re very happy! Five star service, I can’t say enough good things about Mayen as a person and a professional. Hands down! He’s The Best!”

- Taline S.

“Faye helped me purchase my first home last year. She was very professional and worked very quickly to help me procure financing. She made herself available around my schedule and took the time to explain my options for financing to help me get the lowest rate possible. Would highly recommend her to anyone looking for someone that is professional, highly knowledgeable, polite, and responsive.”

- James Z.

“This review is about Mark and Darci Richardson from CSMC Mortage in Simi Valley. This team is the BEST! For the past 12 years our home was "underwater" due to the "crash" in 2007, and unable to do anything with the mortgage except pay it. These two kept on top of things and finally the house qualified to REFI. We just completed everything and it closed last week... and they saved us over $900 a month!! That's a huge savings for a couple of senior citizens! We are SO happy now and finally can breathe. Thanks to Mark and Darci and CSMC Mortgage for following through, jumping through all the hoops necessary and helping us out! I can't recommend them more... they are the BEST!!!”

- Shari S.

“ Mario provided excellent service. Not only was he professional and helpful, but the personal support and reliability was something hard to find these days. I will not be using anyone else and have confidently referred him to friends and family.”

- Heather C.

“CSMC is always our go to lender. Denise Bizzy is fabulous. She really went the extra mile trouble shooting solutions to problems our client had. I do not believe another lender would have been able to pull this off. Five stars for the A+ service from Denise Bizzy and CSMC Mortgage!”

- Mark L.