What context can I use each word in?
Learn when and how to use these words with these examples!
hypothecating
Example
The company is hypothecating its inventory to secure a line of credit. [hypothecating: verb]
Example
The bank required hypothecation of the borrower's car as collateral for the loan. [hypothecation: noun]
mortgaging
Example
They are mortgaging their house to pay for their child's college education. [mortgaging: verb]
Example
The bank required a mortgage on the property as collateral for the loan. [mortgage: noun]
Good things to know
Which word is more common?
Mortgaging is more commonly used than hypothecating in everyday language, especially in the context of real estate. Hypothecating is less common and is more often used in legal or financial contexts.
What’s the difference in the tone of formality between hypothecating and mortgaging?
Both hypothecating and mortgaging are formal terms used in legal and financial contexts. However, hypothecating may be considered slightly more formal due to its association with civil law jurisdictions.
