Why is it Called a Mortgage?

fascinating history behind this common financial term and its surprising meaning.

Those who’ve ever owned a home or are dreaming of buying one, are very family of the word, “mortgage”. But have you ever stopped to ponder why it’s called as such? The takes us back to medieval England and the intricacies of legal agreements. 

The Etymology of “Mortgage”

The word “mortgage” originates from Old French and Anglo-French, where it was formed by combining two distinct words:

• Mort: This prefix means “death” or “dead.”
• Gage: This suffix refers to a “pledge” or “commitment.”

Therefore, the literal translation of “mortgage” is “death pledge.” While it may sound morbid, this term reflects the unique legal arrangement that mortgages represent.

The “Death Pledge” Explained

When mortgages first emerged in medieval times, they were seen as a pledge or commitment that would “die” under one of two circumstances:

1. Repayment of the Loan: If the borrower successfully repaid the loan in full, the mortgage was considered “dead,” meaning the lender’s claim on the property ceased to exist.
2. Foreclosure: If the borrower failed to repay the loan, the lender could seize the property, essentially killing the borrower’s ownership and making the mortgage “dead” to them.

This concept of a “death pledge” aptly captures the nature of a mortgage as a financial agreement with significant consequences for both the borrower and the lender.

Evolution of the Term

Over time, the meaning of “mortgage” has evolved. While the term still refers to a loan secured by property, the association with death has faded. Today, mortgages are viewed as a common financial instrument for homeownership rather than a morbid pledge.

The “Mort” Prefix in Other Words

The “mort” prefix, meaning “death,” can be found in other English words as well:

• Mortify: To cause extreme embarrassment or shame, as if to “kill” one’s pride.
• Mortal: Subject to death, or causing death.
• Mortician: A person whose job is to prepare dead bodies for burial or cremation.

These words demonstrate how the concept of death has been embedded in language to convey various meanings and emotions.

The word “mortgage” may seem like a simple term, but its origins reveal a fascinating history and a nuanced meaning.While the concept of a “death pledge” may no longer be directly relevant to modern-day mortgages, it serves as a reminder of the significant financial commitment involved in homeownership. By understanding the history and etymology of this word, we gain a deeper appreciation for the complexities and nuances of mortgage agreements.