Wednesday, December 13, 2023

What is a first mortgage?

A first mortgage is the primary loan used to buy a home, giving the lender the first claim on the property in case of foreclosure. It is easier to qualify for than a riskier second mortgage. First mortgages are typically used to finance the purchase of a home, with the lender having priority over any second mortgages. Second mortgages have higher interest rates and usually don't require private mortgage insurance. The interest on a first mortgage can be deducted at tax time, while a home equity loan or HELOC can only be deducted if used for home improvement or repair.



Original post here: What is a first mortgage?

No comments:

Post a Comment

Georgia Fights Property Tax Surge: Capping vs. Exempting

Home values in Georgia have surged, leading property taxes to ↑ 41% since 2018. Lawmakers are proposing solutions: 1. Senate: – Cap an...