What context can I use each word in?
Learn when and how to use these words with these examples!
hypothecation
Example
The company used hypothecation to secure a loan for their new project. [hypothecation: noun]
Example
The bank agreed to hypothecate the property as collateral for the loan. [hypothecate: verb]
mortgage
Example
We took out a mortgage to buy our house. [mortgage: noun]
Example
The bank will mortgage the property to secure the loan. [mortgage: verb]
Good things to know
Which word is more common?
Mortgage is more commonly used than hypothecation in everyday language, especially in the context of real estate transactions. Hypothecation is less common and is typically used in financial or legal contexts.
What’s the difference in the tone of formality between hypothecation and mortgage?
Hypothecation is a more formal term than mortgage, which is commonly used in everyday language. However, both terms can be used in formal and informal contexts depending on the situation.
