MORTGAGE BASICS


Strangely enough, the word "mortgage" comes from the French word "mort," which means "dead," and "gage," from Old English which means "pledge".

According to Sir Edward Coke (who lived from 1552 to 1634), the term came from the doubtfulness of whether or not the mortgagor would pay the debt! In those days, if the mortgagor did not, then the land pledged as security for the debt was taken away. The land was considered 'dead' to the mortgagor. (In other words, as if the person never had it.)

Nowadays, the term mortgage is commonly used to refer to a loan for the purpose of purchasing a property. We don't associate anyone's death with it! (Although, it might seem as if you might be dead before your mortgage is paid off.)

Home mortgages are the most common type of mortgage. Very few of us will be in the unique position of paying cash for our home.

MORTGAGE BASICS
    Summary of the rules
    How much can you borrow?
    How do you prove your income?
    How long are mortgages often for?