The word mortgage comes from a french word that means death contract

The Origins of the “Mortgage”: Unveiling the Death Contract

The word “mortgage” has become a familiar term in our lives, representing a loan taken out to purchase property or real estate. However, have you ever wondered where this term originated from? It may surprise you to discover that the word “mortgage” has its roots in a French word that translates to “death contract.” In this article, we will unravel the intriguing history behind this seemingly morbid term.

The French Origins: Mort-Gage

The French word “mortgage” derives from two distinct words: “mort” meaning “dead,” and “gage” signifying a “pledge.” During medieval times, the verb “morgager” was commonly used in France, describing the act of pledging one’s property or land as security against a loan. This practice was prevalent among the French aristocracy.

When a borrower pledged their land as security, it was considered a risky endeavor. In the event that the borrower failed to repay the loan according to the agreed terms, the lender had the authority to seize the property, thus, metaphorically speaking, causing the borrower’s land to become “dead” to them. It was this inherent risk and the relation to potential loss that led to the term “mortgage” being coined.

The Evolution of the Mortgage System

Although the term “mortgage” initially carried a weighty connotation, the modern mortgage system has evolved significantly over time. It is important to note that the death contract association is merely a linguistic peculiarity that does not reflect the contemporary reality of mortgages.

In the 12th century, the concept of the mortgage migrated to England. Initially, it followed a similar structure to the French model, where the borrower conveyed their land to the lender for the duration of the loan. However, as time went on, this practice turned into what we now recognize as the modern mortgage.

Today, a mortgage represents a legal agreement between the borrower and the lender, ensuring the repayment of a loan taken out for property acquisition. The lender retains a lien on the property until the loan is fully repaid, mitigating the risk involved for both parties.

Conclusion

The derivation of the word “mortgage” from the French term “death contract” highlights the historical context of property loans. While the contemporary mortgage system is far from a death sentence, it is important to recognize the terminology’s origins and how it has evolved over centuries.

By exploring the ancient roots of the mortgage, we gain a deeper appreciation for the economic systems that have shaped our society. So, the next time you hear the word “mortgage,” you can impress your friends with the intriguing knowledge behind its origins.

Sources: Wikipedia - Mortgage Loan