Where does the word mortgage come from - tradeprofinances.com

Where does the word mortgage come from

## Etymology of the Word “Mortgage”

The term “mortgage” originates from two Old French words: “mort” (meaning “dead”) and “gage” (meaning “pledge”). The combination of these terms translates literally to “dead pledge.”

### Historical Context

In medieval France, when a debtor defaulted on a loan, the creditor would seize a piece of land from the debtor and hold it as collateral until the debt was repaid. This land was known as a “mort-gage,” representing a pledge that had become “dead” or void if the debt remained unpaid.

### Evolution of the Concept

The concept of a mortgage evolved over time, gradually shifting from a mere pledge of land to a legal instrument that granted the creditor a claim on the property until the debt was satisfied. This transition is evident in the following stages:

#### 1. Simple Pledge

Initially, a “mortgage” was simply a pledge of land as security for a debt. If the debt was not repaid, the land became the property of the creditor.

#### 2. Usufructuary Mortgage

In this type of mortgage, the creditor gained the right to use and occupy the mortgaged land while the debt remained unpaid. This gave the creditor a stronger interest in the property.

#### 3. True Mortgage

A true mortgage, as we know it today, arose when the creditor’s claim on the property became a lien, ensuring that the debt would be repaid even if the debtor defaulted.

### Latin Derivative

The Old French term “mort-gage” was eventually adopted into English, with its spelling slightly modified to “mortgage.” However, the Latin derivative “mortuum vadium” (meaning “dead pledge”) is still occasionally used in legal contexts.

Read More  Are mortgage rates still low

### Other Languages

The term “mortgage” has been adopted into numerous other languages:

* Italian: ipoteca
* German: Hypothek
* Spanish: hipoteca
* Portuguese: hipoteca
* Japanese: mortgages (モーゲージ)

### Modern Usage

In contemporary real estate transactions, a mortgage is a legal agreement between a borrower (the mortgagor) and a lender (the mortgagee) that secures the repayment of a loan. The mortgage grants the lender a security interest in the mortgaged property, which is typically a house or other real estate.

get_sidebar(); get_footer();