Yet Another Reason to Dislike Mortgages

Here’s a nice little blurb I found about the origin of the word: “Mortgage”

“The origin of the word “mortgage” is intriguing. It is a French word generally believed to be derived from two Latin words–”mort” (meaning death) and “gage” (meaning pledge or something of value that’s forfeited if the debt is not repaid).

Although you might feel as though you are signing your life away when you take out a mortgage, that’s not really what the word means. The part of the word dealing with death applies to the passing away of the agreement. When the homeowner eventually pays off the loan, the lender’s claim to the property is dead. If the homeowner fails to make payments in accordance with the mortgage, the homeowner’s rights to the property cease to exist (or die).”

Whew, sign me up for a death pledge! Or…not at all. It is something to keep in mind when purchasing a house: Until that house it’s paid off, you’re not a “homeowner,” you are borrowing that house from the bank, who can take it from you whenever you can’t cough up the mortgage payment!

-Xias