Mortgage

Definition

A mortgage is a legal agreement by which a bank or similar organization lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Parts of Speech

Noun
Verb

Pronunciation

American English

IPA Pronunciation: /ˈmɔrgɪdʒ/
Respelling: MOR-gij (with "MOR" as in "more" and "gij" as in "bridge")

British English

IPA Pronunciation: /ˈmɔːɡɪdʒ/
Respelling: MAW-gij (with "MAW" as in "more" and "gij" as in "bridge")

In both dialects, "mortgage" places the primary stress on the first syllable. The pronunciation is quite similar across both American and British English, with a slight difference in the vowel sound of the first syllable: "MOR-gij" in American English and "MAW-gij" in British English.

Etymology

The term "mortgage" comes from Old French "morgage", which translates to "death pledge." It is derived from "mort" (death) and "gage" (pledge). The name refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.

Derivatives

Mortgagor
Mortgagee
Mortgaging
Remortgage
Mortgageable

Synonyms

Home loan
Loan
Lien

Antonyms

Equity
Ownership
Unencumbered property

Usage

"Mortgage" is commonly used in real estate and financial contexts to refer to a secured loan for property.

Many first-time homeowners acquire their homes through a mortgage.
They decided to mortgage their house to fund their startup.
It's important to pay your monthly mortgage payments on time to avoid penalties.

Related Terms

Foreclosure
Refinance
Principal
Interest
Down payment

Detailed Definition

Noun

Legal Agreement for Loan: A legal agreement in which a person borrows money to buy property (such as a house) and pays back the money over a period of years.‍
Example: They took out a mortgage to buy the house.

Conveyance of Property: A conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms.‍
Example: The bank holds the mortgage on our home.