Mortgage: You Wont Believe Where This Word Comes From

Real Estate Agent

Mortgage: The Death Pledge

Believe it or not, if you looking into the etymological source of the word "Mortgage, you will find it is derived from a French word “mort-gage”, which literally means death-pledge.

Mort: Death | Gage: Pledge

French peasants were forced to to work until the day they died for the privilege of owning a new house. Mortgages were first referred to as “Living Pledges”. It was supposed to be an instrument that gives the owner an opportunity to possess a home while continuing to repay for it to gain its total ownership after finishing the repayment of the whole debt. This should be achieved way before their dying days. However, property prices increased so much, people had to work for a lifetime to repay this debt, hence, the word changed into Death Pledge.

Mortgages in the 21st Century

By reading the definition of the word in a real estate dictionary, its clear that a Mortgage has no relation to it's  ancient derivation. However, unlike old times, a mortgage in todays'  days often causes their bearers to work for a lifetime in an effort to repay their debts or risk loosing their home.

Since the introduction of the term in the real estate industry for many years, it has continued to draw mixed reactions among the stakeholders and homeowners who are within the market looking for their financial options whenever they need to own homes.

A mortgage gives you the the ability to take a given amount of money that you are not able to pay for when you are trying to own as home. When you have loans to enable you possess a home as debt, you will often end up paying more money than the original price of the given loan you were to acquire from the bank. In the process, when you invest in real estate, you will often be sure that you would make huge amounts of money as return when compared to what you can get by investing in other available options in within the market.

What Are The Benefits of a Mortgage?

Many people often do not know the benefits of mortgage when taking the loans from the given market. However, you must be aware on the benefits and dangers that comes with mortgages when taking these loans. For those people who will be struggling with repaying their monthly payments, they should opt for smaller houses as opposed to buying these big houses.


When you do take a mortgage, you are likely to repay twice or thrice the present value of the house that you would buy from the given mortgage loan. According to Robert T. Kiyosaki in the book of RICH DAD, POOR DAD, getting out of debts is the first step to get out of your financial liberation especially when you need to improve your financial net worth. You must write a road map on how you can get out of financial debts if you need to improve your ability to earn more and stay financial freedom. One may wonder how this type of slavery called death pledge “contract” still exists in the modern civilized society for those people who need to own homes.

What Are The Dangers of A Mortage?

Taking out a mortgage can be a good or bad idea depending on what you need to do when making your financial decision. It is a good idea when used as leverage to buy investments houses,  at the same time bad when you use it without caution while trying to live a life you cannot afford, buy what you cannot, impress other people etc.

A mortgage is indeed a death pledge for those who fail to take control of their finances, but it is a liberating tool for those who know how to use debt to their advantage. For instance, if you are going to invest in a house that pays you 15% interest, then taking on a debt for 5% since it would reduce the cost of debt. According to Robert T. Kiyosaki in the book of RICH DAD, POOR DAD, a person must be able to learn the difference between good debt and bad debt when they need to make their financial decisions when buying house or any other property in form of assets. Mismanaged, a mortgage can indeed be your death pledge. However, used responsibly, it can accelerate your quest to financial freedom.

Comments (1)

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Hey David this is a fantastic post and I hope it gets the attention it deserves. Well written and packed with great content and the original souce of that is pretty crazy scary too, I had no idea about that.

Mar 26, 2015 12:00 PM