The origins of the word 'mortgage' will make you think twice about buying a house

Publish date: 2024-07-12

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Does this look like a "death pledge?" Flickr / Wonderlane

On Tech Insider, Chris Weller dives into everyday words with "weird and disturbing origins."

One of those words? Mortgage.

"Word nerds will notice an eerie root word in 'mortgage' — 'mort,' or 'death,'" Weller writes. "The term comes from Old French, and Latin before that, to literally mean 'death pledge.'" 

That may seem a little severe. After all, the home you've bought is somewhere you're going to live. That's a positive thing, right?

Only if you can afford it.

Quentin Fottrell Marketplace reports that an astounding half of Americans have trouble affording their housing.

According to the "How Housing Matters" survey from nonprofit John D. and Catherine T. MacArthur Foundation and Hart Research Associates, 50% of Americans have made a major sacrifice along the lines of taking on credit card debt or taking a second job in the past three years, just to afford their housing. 

Traditionally, experts consider housing costs that require no more than 30% of your household income to be affordable, but Fottrell points out that "15% of American homeowners are living in housing markets where the monthly mortgage payment on a median-priced home requires more than 30% of the monthly median household income — long considered the maximum for rent/mortgage repayments."

The Motley Fool used numbers from the Bureau of Labor Statistics' (BLS) 2013 Consumer Expenditure Survey to calculate the average monthly mortgage payment of Americans, by age, as shown in the graphic below. The numbers include property taxes, various insurance, maintenance, and mortgage interest, all costs that come with holding and paying a mortgage.

Average American's Mortgage Payment, by Age
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You'll notice that the lowest average monthly payment — that of the 75-and-above group — is still $447 a month. If you sort that by percentage of pre-tax income, that's nearly 16% of an average household's income. 

The data is also broken down by income level, which you can see on The Motley Fool.

Fool highlights that the numbers are imperfect, but that the overall message still stands: When you commit to a mortgage, the monthly costs of homeownership will probably be more than you expect ... and they'll be that way for decades.

"As a way to describe a 30-year agreement you make with your bank," Weller points out, "the etymology sounds about right."

Read the rest of the words with "weird and disturbing origins" »

Libby Kane, CFEI Executive Editor, Personal Finance Insider Libby Kane, CFEI, is the Executive Editor for Personal Finance Insider, Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money Insider readers already know and love.  She holds the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council. Previously at Business Insider, she oversaw teams including Strategy, Careers, and Executive Life.Her team at Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances  (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Personal Finance Insider also rates, explains, and recommends financial products and services.Outside of personal finance, she's written about everything from why Chinese children are so good at math to the business of dogs to hard truths about adulthood.In September 2016, she helped launch Business Insider Netherlands in Amsterdam. She also spent three years as a member of the Insider Committee, a cross-team focus group working on making Business Insider an even better place to work.She's always interested in research, charts, and people: new and interesting research, compelling charts and other visuals, and people who are willing to share the details of their impressive financial accomplishments and strategies.Before joining the company in March 2014, she was the associate editor at LearnVest, covering personal and behavioral finance.If you have something to share, please reach out to lkane@businessinsider.com. Read more Read less

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