mortgage
MOR-gij
/ˈmɔːrɡɪdʒ/
A legal agreement by which a bank or other organization lends money at interest in exchange for taking title to the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Specifically a loan secured by real estate. It's a long-term commitment, often 15-30 years.
The story behind the word. The word 'mortgage' comes from Old French 'mort gaige', literally meaning 'dead pledge'. This rather grim name refers to the idea that the pledge (the property) becomes 'dead' to the borrower if the debt is not repaid. Alternatively, it was considered 'dead' because the pledge expired (died) when the debt was paid or when the property was foreclosed.
Word relationships
- home loan: A more colloquial term for a mortgage, emphasizing its purpose.
- lien: A lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged; a mortgage is a specific type of lien on real estate.
Commonly confused with
- loan: A 'loan' is a general term for borrowed money. A 'mortgage' is a specific type of loan used to buy real estate, where the property itself serves as collateral.
Word family
- mortgagor (noun): the person who borrows money and gives the mortgage.
- mortgagee (noun): the lender (e.g., bank) who receives the mortgage.
Collocations
- take out a mortgage
- pay off a mortgage
- mortgage payments
- fixed-rate mortgage
- adjustable-rate mortgage
Example sentences
- "They took out a 30-year mortgage to purchase their first home." Buying a house.
- "Many people aspire to pay off their mortgage early to become debt-free." Paying off debt.
Memory hook
A MORTGAGE is a 'death pledge' if you don't pay it, as your home could be taken. DEAD pledge
When not to use
Do not use 'mortgage' for any other type of loan; it's exclusively for property.
Fun facts
- The 't' in mortgage is silent, a common feature of words derived from French.
Also appears in
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