What amount does Gail’s first mortgage represent?

The first mortgage represents the primary lending amount borrowed against a property. In the context of this question, choosing the amount of $200,000 as Gail’s first mortgage indicates that this is the original loan amount secured by her property.

When assessing mortgages, the first mortgage generally refers to the initial funding provided by a lender secured by the real estate asset. This amount is crucial as it often plays a significant role in determining the property's equity and the homeowner's financial situation.

The other amounts listed are likely to represent either subsequent loans (like a second mortgage), other encumbrances against the property, or potentially the total property value. However, the first mortgage is usually the largest or most substantial loan amount considered in the context of primary financing on a property. Therefore, identifying $200,000 as the first mortgage indicates an understanding of the structure of mortgage loans and their prioritization.