First mortgage loans in Orinda are loans that have as collateral a piece of residential or commercial property that occupies the first lien on the property being financed. Although this is the definition of a first mortgage loan it is possible in many jurisdictions to secure two or more loans on the same asset but should this happen, the lender of first instance who holds the first mortgage has senior claim in the event of a default by the borrower. A borrower often uses a mortgage to purchase or to refinance property. The terms of a first mortgage are often very different than the terms of a second or third mortgage both in interest rates and length of term.
When a lender offers mortgage Loans In Orindawhich is secured by the property in question, the lender can take control of the property in the event the borrower should default on the loan. In most cases the property is reposed and sold, the proceeds from the sale are used to satisfy the mortgage. It became very apparent over the last few years that property lost value rather than increased in value, this is why most lenders are reluctant to allow lenders to have first mortgage loans in Orinda that equally 100 percent of the value of the property at the time of purchase. Most lenders like to see a down payment of at least 10 percent or more so the borrower has to either have cash or take out a simultaneous second mortgage, the proceeds of which are used as the down payment.
As circumstances change over the term of the loan, owners can pay off their first mortgage and other debts they may have by refinancing the loan. To ensure that the new mortgage maintains its position as first lien, all other liens against the property must be paid off with the proceeds from the refinanced loan. It is possible to leave second or subsequent mortgages in place if the lien holders agree to a subordination clause which allows the new loan to move into first lien position, ahead of existing liens.
First mortgage loans in Orinda can be short or long term, they can also be negotiated with a fixed interest rate or a variable rate. The terms that most lenders offer on a first mortgage usually run between 10 and 30 years. Second mortgages often have a very short term, in many cases they must be paid in full within a year.
