What was the amount of Laurel's first mortgage?

In determining the amount of Laurel's first mortgage, it's important to consider the details typically provided within the context of mortgage scenarios. The indication that $395,000 is the correct figure suggests that this amount might represent the initial loan secured by Laurel to purchase property or refinance existing debt.

In many cases, the first mortgage amount reflects the total borrowing needed to cover the purchase price of a home, adjusted for any down payment that might have been made. If Laurel's first mortgage was indeed set at $395,000, this implies a significant real estate investment and possibly reflects the housing market conditions or property values in the area where she was purchasing.

Understanding the significance of first mortgages can also help in real estate finance. The first mortgage is often the primary lien against the property and generally has priority over future loans taken against the same property. The larger the first mortgage, the more capital Laurel has borrowed in relation to her property, which can impact her future financing options and equity in the home as it appreciates over time.