People typically don't choose to discuss mortgages when gathering with friends or family in a social setting. They prefer to discuss other subjects they remain more passionate about. Although casual talk about this topic has increased recently thanks to incredibly low rates, it's still not the first thing that comes to a person's mind when they run into someone they know. However, when the topic does come up, why not share some interesting facts that others likely don't know? The following tidbits tend to surprise people when they come up in conversation.

High Rates

While interest rates remain incredibly low today for those with good credit, this wasn't always the case. At one time, Mortgage Loans came with rates as high as 18.63 percent. That was the highest rate of a 30-year fixed-rate loan back in 1981, with the lowest rate for that year coming in at 14.8 percent. Fifteen-year interest rates are slightly lower than their 30-year counterparts, but the interest rate only accounts for a portion of what the person pays to secure the loan. Other factors to consider include points and mortgage insurance, as they can raise or lower the monthly payment along with the interest rate.

The Meaning Behind the Word

The word mortgage comes from the French language. Mortgage in French refers to the way in which the real estate is purchased. The borrower or pledgor purchased the property using a loan and must repay this debt before becoming the rightful owner of the asset. Homes tend to be the largest purchase a person makes in their lifetime, which is why the term mort was used. It refers to death, with people assuming the purchasing of property to be among the deadliest of all transactions. When a person refers to loan amortization, they are speaking of killing the debt, another reference to death.

Billionaires Take Out Mortgages

People often assume billionaires buy their properties outright. However, this isn't the case. Mark Zuckerberg refinanced his Palo Alto home back in 2012. He did so with a mortgage that came with a 1.05 percent interest rate. Most people aren't able to secure a deal of that type but can still save money on their mortgage by refinancing at the right time. When Zuckerberg refinanced his home, his rate was less than the rate of inflation. This allowed him to get the mortgage for basically nothing and use the funds he would have devoted to purchasing the property for other things. Moves like this may help to explain how he has become one of the richest men in the world today.

Paying Off a Mortgage is a Time for Celebration

People often celebrate paying off their mortgage. In the television show "All in the Family", Archie Bunker set his mortgage note on fire. In certain countries, people paint their front door red when they pay their last mortgage payment to show they own the property free and clear. A person might wish to continue setting aside the money they paid on the mortgage each month so they have funds when they retire.

Most people aren't aware of these fun facts about mortgages. There are many others a person may wish to share when this topic comes up in conversation. This information tends to fascinate those who hold a mortgage or would like to in the future, so be sure to share them whenever you can. Other people will appreciate your knowledge and enjoy hearing what you have to say.