The word 'mortgage' comes from medieval French, meaning 'death contract.'

The term ‘mortgage’ was born out of the French word for ‘dead pledge’

Borrowing money to buy a house has been a global practice since the Romans in the fifth century BCE. But before the mortgage, there was the “dead pledge,” which labeled the property as “dead” to the borrower until they paid off their loan to the lender.

Mortgages are loans used to buy property

A mortgage is a loan used to buy property, like a house. Borrowers typically put down a percentage of the cost of the home, and the amount left over is financed through a lender, like a bank.

Historically, borrowing money from other people to purchase property was common until private financing companies—primarily building and loan associations—stepped in to offer mortgages to buyers.

In 2024, 74% of homebuyers took out a mortgage

Debt owed on mortgages made up about 70% of US consumer debt as of 2025. Mortgage collateral ensures the lender isn’t at a complete loss if the borrower defaults. Under most mortgage contracts, the property is considered collateral under the loan. This means that if a borrower doesn’t repay the loan, then the lender can seize their property.

For much of human history, homeownership was primarily associated with the elite

Before the Industrial Revolution, early mortgages were rather exclusive loans given only to nobility. But as more people gained more wealth through the Industrial Revolution, banks began to take on “higher-risk” loans to everyday people.

The history of student loans can be traced back as far as the 1400s.

The word 'vampire' appeared in the English-speaking world in the 1730s

However, earlier mentions of creatures with similar characteristics existed throughout Medieval Europe. For example, people often spoke of revenants—restless dead creatures who tormented the living. Historians believe these stories grew in popularity in part because of influence from the Catholic Church, which was emphasizing the idea of purgatory. These older revenant stories eventually influenced modern vampire folklore.

A history of "Memento Mori," from the ancients to today

The ancient Latin phrase 'memento mori' means 'remember you will die.' The counterintuitive utterance has long provided a moral and spiritual framework for individuals to evaluate their life's decisions and worldview. Though it appears morbid at first glance, the saying is meant to inspire a thirst for life. Review the various ways the idea has inspired different cultures in this article, from the Romans and Egyptians to contemporary tech leaders like Steve Jobs.

Refinancing a mortgage is when a homeowner exchanges their current loan for a new one

Homeowners typically refinance to secure a lower interest rate and potentially a new loan term length. Debt owed on mortgages made up about 70% of US consumer debt as of 2025.

Before the Great Recession, lax requirements to get a mortgage resulted in mass defaults that left nearly 19 million homes vacant.

To continue selling mortgages, agencies that determine how risky a loan is gave high ratings to homebuyers regardless of their actual risk portfolio.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

Money—not land—became Europe’s key economic driver in the Middle Age

During the medieval commercial revolution, money gradually replaced land as the primary economic commodity. Expanding trade, markets, and finance transformed Europe’s economy—laying foundations, historians argue, that were essential for the later Industrial Revolution.

Before the modern banking system, most lending resembled private credit

Before the creation of the modern banking system, the majority of loans were negotiated directly between the lender and the borrower—effectively making them private credit transactions.

Visualize the 5,000-year history of consumer credit in one infographic

Consumer loans for agriculture were likely first used around 3500 BCE, but modern consumer credit took many more centuries to be established. England's credit reporting system, for instance, dates back to the early 1800s when a group of English tailors began swapping information about customers who failed to settle their debts.

The concept of life insurance likely originated in ancient Rome around the year 100 BCE

However, life insurance policies didn’t reach the Americas until 1759, when life insurance started being used to protect the families of Protestant ministers when said ministers died. This timeline of life insurance’s early history—and how it has evolved since then—provides more details.

From bartering to banking, temples to electronic transactions, here’s banking has evolved significantly since ancient times

A few historical facts about banking (like that one day, not long ago, certificates of deposit were physical pieces of paper) may not surprise you. But did you know that the church was the original lender? And that Julius Caesar himself invented foreclosure?

Mortgage insurance offers help to buyers who can’t afford to put down 20% up front

Buyers who need mortgage insurance end up paying more per month on top of their loan to cover the added insurance. At its core, mortgage insurance helps buyers purchase a home they can’t afford, letting them put down 20%, while protecting lenders offering potentially risky loans.

Modern payday lending came about in the late 1990s

In the early 1900s, unlicensed "salary lenders" used to give consumers one-week loans at annualized percentage rates of more than 100%. But wage garnishment and financially abusive practices led some states to create special licenses for lenders and implement rate caps to protect consumers. In the 1990s, a series of deregulations in various states opened the door for the modern payday lending industry to take off.

A margin call is a way for traders to pay off debts by selling a security before they may be ready to do so.

The Medicis of Italy innovated 'bills of exchange,' precursors to checks

At the time, lending money for interest (also known as usury) was banned in much of the Christian world. The enterprising Medicis developed bills of exchange to allow merchants to promise payment without cash or coin (with some discrete means of earning interest woven in). Learn more about how this family laid the foundation for modern banking.

Fannie Mae and Freddie Mac are federal housing enterprises originally established to offer affordable housing loans to buyers

The Federal National Mortgage Association is commonly called Fannie Mae, and the Federal Home Loan Mortgage Corporation is called Freddie Mac. Since Fannie Mae’s creation in 1938 and Freddie Mac’s in 1970, they’ve become staples of the housing market.

'Muggle’ entered the Oxford English Dictionary in 2003

The Harry Potter term for a nonmagical person became an official English word when the Oxford English Dictionary added it in 2003—cementing the series’ influence on modern language and popular culture.

'Usury' is the act of lending money at an excessively high interest rate

Laws regulating predatory lending are called usury laws and vary from state to state. Payday lending has historically been exempt from some states' usury laws, and some lenders have found loopholes in state laws or business structures that allow them to provide short-term loans with high interest rates.

Watch Margot Robbie explain subprime mortgages—risky loans given to homebuyers with low credit scores or no income verification.

Death taxes have helped fund wars since the 1860s

Death taxes date back to 700 BCE and were used in Ancient Rome and Ancient Egypt. In the US, they've been used to finance wars since the Civil War, and have been levied on both the estate and beneficiary. The estate tax created during WWI to help finance war efforts is still in effect today.

The rare, so-called 'assumable' mortgage is landing homebuyers a 3% rate.

Subprime lending practices, which fueled the housing bubble, surged after 2000.

The 30-year fixed-rate mortgage is by far the most popular in the US

The most common types of loans are conventional, jumbo, fixed-rate, adjustable, and government-backed.

There's a myth that Al Capone coined the term 'money laundering,' or the process of disguising the criminal origins of illegally obtained money so it can be used without detection.

Securitization has become common practice in home financing

When a homebuyer finances with a lender, they aren’t necessarily the one footing the bill. After a buyer secures a home loan, the lender can sell the loan to another financial institution or a private institution. That group can later sell that mortgage to investors. This is called securitization.

Credit reporting's earliest origins in the 1700s resemble a game of telephone, with rural merchants asking their most esteemed neighbors to vouch for them to sleuthing urban lenders.

Use this mortgage calculator to estimate how much you can borrow, factoring in fundamentals such as financial standing, property cost, loan length, and more.

To avoid a total collapse of the housing market, the US government took control of the two leading mortgage companies, Fannie Mae and Freddie Mac.

A medievalist explains how romantic love emerged as a cultural concept

Many long-form stories written in English were originally considered "romances," a term derived from the Old French word for "the speech of the people." But changes in medieval culture, triggered by a number of 12th-century church reforms, led to a new interest in what we now consider romantic love, including a new view of marriage as a pursuit of love rather than a transaction. Those new perspectives were then reflected in the period's popular stories, including stories in Chaucer's "Canterbury Tales."

The word 'hoax' comes from the phrase 'hocus-pocus'

The famous phrase "hocus-pocus" combines liturgical Latin and gibberish. It's a silly series of words often said during magic tricks. The phrase naturally evolved into "hoax" over time and became a standard English word around the year 1800.

Mummification involves drying a body to preserve it long-term

It was a common and respected practice in many ancient societies. The Egyptians perfected the ritual as part of their religious views of death, believing the dead needed to remain physically intact to reach the afterlife. Mummies were common also in ancient China, Mesoamerica, and the Canary Islands.

How banking works

To do big things, people often need more money. Banks jumpstart economic activity with loans paid back with interest, and when things are working well, both people and the bank make more money. Formed in the Middle Ages amid competing currencies in Italy, banks—from the Italian for bench, banco—helped stimulate that era's commercial revolution, a massive expansion in Mediterranean trade and development. Find out the ins and outs of banks in this quick explainer video.

The idea of a check—or promissory note—goes back to antiquity

As long as traders have looked to pay in cash or coin, the idea of an IOU has been close behind. Clay tablets from ancient Mesopotamia (roughly modern Iraq) and Persia (Iran) suggest proto-checks were used at the time. Islamic traders innovated "sakks" in the 9th century, leading to the broader adoption during the Middle Ages in Europe.

Feudal landholding organized medieval Europe’s economy without relying on slavery

From the 10th to 13th centuries, Europe’s agricultural system relied on localized hierarchies. Lords granted land to knights for defense, who in turn mainly oversaw free peasants paying rents in labor, goods, or money rather than living under slavery.

Mortality tables help determine the probability of death for specific populations

A mortality table is a diagram that helps predict a specific population’s likelihood of death within a particular time period. Life insurance companies often use them to help figure out pricing for their insurance products. They’re sometimes known as actuarial tables or life tables.

Pioneered by JPMorgan, credit default swaps are a form of financial derivatives that act as insurance policies for banks issuing assets created with risky loans.

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The bond market is where bonds and other debt securities are traded

Bonds are fixed-income investments allowing individuals to lend a specific amount of money to a large entity, like a government or corporation, for a set amount of time in return for interest paid out over the life of the loan. The bond market is widely considered a key economic barometer.

'Book of the Dead' spells were often written directly on the mummy bandages

Archaeologists have identified over 200 spells inscribed on various funerary objects, including coffins, scrolls, mummy wrappings, and more. Later historians compiled the spells in single volumes, giving them the cinematic name "Book of the Dead."

Inflation was a word before deflation was

The word inflation has Latin roots and technically means an influx of air, first appearing in the English language in the 1890s to describe bike tires. Deflation's first known mention in an economic text was in 1919.

The word 'coupon' comes from a French word meaning 'to cut.'

Private mortgage insurance protects the lender rather than the borrower

Also known as a “PMI,” private mortgage insurance may be required for those who have a conventional loan and put less than 20% down on their home. A PMI could also be required for someone refinancing their mortgage if they have less than 20% equity remaining in the property.

'Mardi Gras' is French for 'Fat Tuesday'

Ash Wednesday, the first day of Lent, requires practicing Catholics to fast. The day before the fast became known as "Fat Tuesday" because it was seen as the last opportunity to indulge before fasting on Ash Wednesday and sacrificing throughout Lent. "Carnival" comes from the Latin for "removal of meat."

Microfinance, conceived as a solution to conservative critics of Western aid as a handout system in the 1980s, is a small-dollar, community-based financing structure that was originally created as a way to expand access to credit and end poverty.

The Middle Ages, the roughly 1,000-year period between the fall of Rome and the Renaissance, shaped the political and cultural foundations of modern Europe.