“Mortgage” means “Death Pledge”… Wait… What?!
Strangely enough, the root word mortgage comes from the French word “mort”, which means “dead”, and “gage” from Old English, which means “pledge”.
In the 1500s, this term was used in the doubtfulness of whether or not the mortgagor would pay the debt. The word does not refer — as it may seem — to the debtor’s metaphorical death, in taking on such a large loan that usually takes many years to repay. Instead, the “mort” part of the word signifies that the agreement “dies” when the debtor has repaid the creditor for the full amount of the mortgage. If the mortgagor did not pay, then the land pledged as security for the debt was taken away.
Nowadays, the term mortgage is used as a term for purchasing a property. Mortgages all have a term representing the length of time before your home is paid off and a rate that determines the principal and interest payment that will be required to be paid during this term.
If you are unable to make your mortgage payment for several months, you could lose your home. If you are ever in this situation, there are ways to save yourself from foreclosure. Contact your mortgage broker or lender for more information.
