A mortgage is a legal agreement between a borrower and a lender, in which the borrower pledges property (usually a house) as collateral for a loan. While the concept of mortgages has been around for thousands of years, the word “mortgage” itself has an interesting and complex history. In this article, we will explore the origins and evolution of the word “mortgage.”
The Origins of the Word Mortgage
The word “mortgage” can be traced back to the Old French term “mort gaige,” which translates to “dead pledge.” The “dead” in this context refers to the fact that the pledge ends (or “dies”) when the loan is repaid, while the “pledge” refers to the property that is offered as collateral. The term was first used in English in the 14th century, and it referred specifically to a type of pledge in which land was given as security for a loan.
The Evolution of the Word Mortgage
Over time, the meaning of the word “mortgage” expanded to encompass a wider variety of loan types and collateral. In the 16th and 17th centuries, the term was used to refer to any type of security given for a loan, including personal property and livestock. By the 18th century, the term had come to be used exclusively for loans secured by real estate.
In the 19th and 20th centuries, the word “mortgage” underwent further changes in meaning and usage. In the United States, for example, the term came to be associated with the widespread practice of buying homes with borrowed money. As a result, “mortgage” became a common term in American English, and it remains widely used today.
Interesting Facts About Mortgages
- The first modern mortgage was created in England in 1190, when Richard I borrowed money to fund the Crusades.
- The word “mortgage” is derived from the Old French term “mort gaige,” which means “dead pledge.”
- The phrase “underwater mortgage” refers to a situation in which the borrower owes more on a property than it is worth.
- The word “mortgage” is often used metaphorically to refer to anything that is burdensome or oppressive, such as a debt or a difficult situation.
Conclusion
The word “mortgage” may have a somewhat morbid origin, but its history is rich and fascinating. From its roots in Old French to its current usage in modern English, the word has undergone many changes and adaptations over the centuries. Whether you’re a homeowner or simply interested in the history of finance, understanding the origins of the word “mortgage” can give you a deeper appreciation for this important concept.
