Origin and Etymology of Mortgage in Chronological Order
[Latin (14th century)]
The English word ‘mortgage’ can be traced back to the Latin term ‘mortuum vadium,’ which translates to ‘dead pledge.’ The term originated in the 14th century and referred to a legal arrangement where a borrower would offer their property as security for a loan. In the event of default, the lender would have the right to take possession of the property.
[Old French (14th century)]
The Latin term ‘mortuum vadium’ was then borrowed into Old French as ‘mort gaige’ or ‘mortgage.’ The meaning remained similar, referring to the same concept of a pledge or security for a loan. However, the term ‘mortgage’ in Old French also began to take on the additional sense of ‘death pledge’ or ‘pledge until death.’
[Middle English (14th century)]
During the Middle English period, the term ‘mortgage’ was adopted from Old French into English, retaining its meaning of a pledge or security for a loan. The concept of ‘death pledge’ also remained, although it gradually became less prominent over time.
Meaning of Mortgage
The word ‘mortgage’ functions as both a noun and a verb in the English language.
- Noun: A mortgage is a legal agreement in which a borrower offers their property as collateral for a loan.
- Verb: To mortgage means to pledge or offer property as security for a loan.
Example sentences:
- Noun:
- He took out a mortgage to buy his dream house.
- The bank approved their mortgage application.
- She is struggling to pay off her mortgage.
- Verb
- They had to mortgage their car to cover the medical expenses.
- We decided to mortgage our property to fund the business expansion.
- He regrets mortgaging his future for short-term gains.
Derivatives and Related Words of Mortgage
- Derivatives: Mortgagor, mortgagee, mortgaged
- Related words: Mortgagorship, mortgageable, mortgageability
Synonym of Mortgage
- Synonyms: Loan, pledge, security, lien, encumbrance, hypothecation
Antonym of Mortgage
- Antonyms: Release, discharge, free, unencumbered, unburdened
Understanding Mortgage in Different Contexts
1. Legal Context:
In a legal context, a mortgage is a binding agreement between a borrower and a lender, where the borrower offers their property as collateral for a loan. This provides security for the lender in case of default.
Example: “The mortgage document clearly outlines the terms and conditions of the loan.”
2. Financial Context:
In the financial context, a mortgage refers to the loan taken to purchase real estate. It typically involves regular payments over a specified period, including both principal and interest.
Example: “She obtained a mortgage from the bank to buy a new apartment.”
3. Homeownership Context:
In the context of homeownership, a mortgage represents the financial commitment and responsibility of repaying the loan taken to purchase a property.
Example: “They are working hard to pay off their mortgage and own their home outright.”
FAQs
- What is the origin of the word ‘mortgage’?
- What does a mortgage mean in legal terms?
- Can a mortgage be used to purchase any type of property?
- What happens if a borrower defaults on their mortgage?
- Can a mortgage be paid off early?
The word ‘mortgage’ originated from the Latin term ‘mortuum vadium,’ meaning ‘dead pledge,’ in the 14th century.
A mortgage is a legal agreement where a borrower offers their property as collateral for a loan.
Yes, a mortgage can be used to finance the purchase of various types of properties, including residential, commercial, and vacant land.
If a borrower fails to make the required mortgage payments, the lender has the right to foreclose on the property and sell it to recover the outstanding loan amount.
Yes, it is possible to pay off a mortgage before the agreed-upon term. This is known as prepaying or early repayment.