Finance
What is the primary distinction between a 'first mortgage' and a 'second mortgage' in Connecticut?
AOnly the dates differ
BPriority—the first mortgage has priority over a second mortgage in foreclosure proceeds✓ Correct
CThe interest rate is always higher on the first mortgage
DThe second mortgage is always for a larger amount
Explanation
Priority (lien position) distinguishes first from second mortgages. In foreclosure, the first mortgage holder is paid before the second. The second mortgage carries more risk and typically has a higher interest rate.
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