Mortgage
/ˈmɔːrɡɪdʒ/
Definitions
2 meaningsA legal agreement by which a bank or other lender lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.
/ˈmɔːrɡɪdʒ/
A loan secured by property.
They took out a mortgage to buy their first home.
💡 Simply: A mortgage is like borrowing money to buy a house. You promise to pay it back over time, and the bank has the right to take the house if you don't pay.
👶 For kids: A mortgage is like a special loan for buying a house. You promise to pay it back, or the bank might take the house back.
More Examples
The interest rate on the mortgage was very high.
Refinancing the mortgage can sometimes save money.
How It's Used
"The bank approved his mortgage application."
"They are paying off their mortgage over thirty years."
To convey property to a creditor as security for a loan.
/ˈmɔːrɡɪdʒ/
To pledge property as security for a loan.
They mortgaged their home to fund their new venture.
💡 Simply: To mortgage something means to use it as collateral to get a loan. Like, you let the bank hold your house as a 'promise' that you'll pay them back.
👶 For kids: When you mortgage something, it's like giving the bank a promise that if you don't pay them back, they can have your stuff.
More Examples
He mortgaged his future to pay off his debts.
The company mortgaged its assets to secure the loan.
How It's Used
"They mortgaged their house to start a business."
"She mortgaged the property to cover her debts."
Synonyms & Antonyms
Synonyms
Idioms & expressions
underwater mortgage
A mortgage where the outstanding loan balance is higher than the current market value of the property.
"Many homeowners were stuck with underwater mortgages during the housing crisis."
foreclose on a mortgage
The legal process by which a lender takes possession of the property securing a mortgage because the borrower has failed to keep up with payments.
"The bank had to foreclose on the mortgage after the borrowers defaulted."
From Old French "mort gaige" (dead pledge), meaning a pledge that dies (ends) when the debt is paid. The land goes to the lender if the borrower defaults.
The term originated in medieval England as a 'dead pledge,' indicating that the pledge of land was forfeited if the debt wasn't repaid.
Memory tip
Think of it as 'death-grip' on your property until the debt is paid.
Word Origin
"mort (dead) + gaige (pledge)"