|
Mortgage History
Most
people must obtain financing when they decide to purchase of a
home. Usually this takes form by means of a loan often referred
to as a mortgage. But is a mortgage really
a loan or something else?
According to Wikipedia "a mortgage is a method of using
property (real
or personal) as security for the payment of a debt." so if you have
already mortgaged your real estate it means you have to make over or
pledge usually property by mortgage. And if you are mortgaging it
is simply making a pledge or stake.
Regardless of the terminology, a mortgage is not a new idea, a bit of
mortgage history
will light the path to today. Back in the Bible days
in the book of Nehemiah during a time
of scarcity, some people
mortgaged their lands, vineyards and houses just to buy grain.
Did you also know that the word itself is derived from two smaller
words.
The word
"mort" had the meaning of "dead" and the word "gage"
means a "pledge". This did not
sound like something one would want to
be involved with over the long haul.
A dead pledge does not even sound remotely like a good thing, however
the mortgage
history shows how this all fits together. Because any
profits from the real estate or
property belonged to the lender or
mortgagee until the debt was paid. Thus rendering
any potential income
"dead" to the owner or mortgagor, and I am sure this would have
also
been quite the incentive to repay as quickly as possible.
However, today the concept of a mortgage has changed which I am
sure we can all appreciate. Now a days we tend to think of this term as
a long term loan that we have
chosen to undertake for the privilege of
owning a home, and sometimes for investing in a piece of real estate.
Some people also have an interest in taking out a loan so they may
purchase property to flip for a profit. I hope you have enjoyed this
brief jaunt down
mortgage history lane.
|