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

Mortgages evolved from exclusive agreements for the wealthy into a key part of homeownership today

The word "mortgage" comes from medieval French, meaning "death contract"—but the modern American mortgage has a more recent and complicated history. This explainer looks at how mortgages evolved from exclusive agreements for the wealthy into a key part of homeownership today, including the impacts of New Deal policies, redlining, and the Fair Housing Act.

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.

Buyers used to borrow money from people within their communities to purchase property

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.

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.

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.

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.

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 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.

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.

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.

'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.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.

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.

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.

The word ‘coupon’ comes from a French word meaning ‘to cut’

The history of coupons starts in the US with the Coca-Cola coupon that was mailed to consumers, offering them a chance to come try the soda for free in a nearby pharmacy. A coupon created by cereal company Post is one of the earliest widely cited follow-ups—it offered a penny off a box of Grape Nuts in 1909.

Estate tax opponents coined the term 'death tax' to sway public opinion

Even though the term death tax has been used for centuries, opponents of the federal estate tax started utilizing the term in the 1940s to try and sway public opinion. Since the modern federal estate tax was first established in 1916, opponents have unsuccessfully tried to get it repealed.

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

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.

'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."

There's a myth that Al Capone coined the term 'money laundering'

Al Capone owned multiple dry cleaning businesses in Chicago that were believed to be a front for his extensive bootlegging empire, but that's most likely not where the term "money laundering" actually came from. The word didn't appear in popular lexicon until the 1970s, and there aren't recorded references to Al Capone as a money launderer until much later.

In ancient Rome, toast was added to drinks

Toasted bread crumbs absorbed the acidity of bitter wine and, in some cases, added flavor. Although the term "toasting" was not yet in use, the practice was common. Some say the Roman Senate decreed in the first century CE that all citizens must drink to the honor of Emperor Augustus before every meal, though scholars debate the validity of that claim. Eventually, the literal toast became associated with the tributes.

'Romeo and Juliet' was based on a preexisting narrative poem

Arthur Brooke's "The Tragical History of Romeus and Juliet" was first published in 1562 and shares many details with Shakespeare's "Romeo and Juliet." Shakespeare wasn't alone in his borrowing; Brooke's poem was based on other earlier Italian stories. None of this writing was considered fan fiction—copyright law didn't exist, and stories were regularly cribbed from preexisting sources.

Brush up on your bankruptcy vocab

The technical term for what happens when a court removes a debtor’s obligation to repay money owed is “discharge.” An “automatic stay” is what goes into place once a filing occurs to prevent a debtor from facing lawsuits, evictions, and other negative consequences until the process wraps up.

'Graffiti' comes from the Italian for 'a scribbling'

The word was first used in 1851 to describe the ancient inscriptions on Pompeii's walls. "Graffiti" is the plural form of "graffito," which means "a scribbling."

'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."

Graffiti dates back to at least ancient Pompeii, where citizens scrawled messages to one another on public walls

The concept of phantom limbs, the perception that amputated limbs are still present, dates back to a French military surgeon in the 16th century.

The first horror movie is believed to be George Méliès' 1986 short 'The Haunted Castle,' which pioneered the use of special effects

Trace how the Bill of Rights, inspired by centuries of political theory, took shape between 1774 and 1789.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Apeirophobia is an overwhelming fear of living forever, perhaps stemming from the brain's inability to conceptualize an infinite life.

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

Watch this video that uses Lego bricks to explain how venture capital works.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Frank Lloyd Wright's houses are historically hard to sell because they're old, subject to local landmark commissions, and often unfashionable

The Brothers Grimm were lawyers before they were storytellers, and became interested in fairy tales as they began investigating how rules and customs had been passed down through cultures.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Massive 3D printers have been used to build homes by stacking layers of 'concrete toothpaste,' a fire-resistant material that effectively insulates against outside noise.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

The term 'algorithm' originated from the Latinized name of al-Khwārizmī, a 9th-century mathematician whose works introduced Arabic numerals and the decimal-based numeral system to Europe and whose treatise 'Al-Jabr' gave algebra its name.

Budweiser stores yeast derived from the original 1800s strain in a secret bunker, which only the Head of Yeast Management can access—not even the CEO

The American cockroach is actually from Africa, an apparent hitchhiker aboard ships carrying enslaved people, with evidence suggesting the bug may have arrived in the New World as early as the 1600s.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

Take a 3D tour of the Hajj, Islam's annual pilgrimage to Mecca, undertaken by over 1.5 million Muslims.

Mark Twain spent decades feuding with the US Postal Service, convinced its costs and regulations were bureaucratic overreach.

Bone marrow (soft tissue found inside certain bones) generates roughly 500 billion new blood cells each day

Volcanoes 'die' when their supply of magma runs out, if they are shifted away from their underlying magma reservoir, or if they get clogged by collapsing or their magma cooling back into rock.