Current Mortgage Rates

Thursday, September 02, 2010




Glossary of Terms

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Blanket Mortgage

A blanket mortgage is a loan that covers more than one plot of land that is owned by the same borrower. Land developers most commonly use blanket mortgages to purchase an area of land with the intention of dividing it into many separate lots for resale or development. Rather than mortgaging each lot separately, a blanket mortgage can be used to reduce costs and increase time efficiency. Blanket mortgage loans are also used by home buyers for financing the construction of a new home. Borrowers can use a blanket mortgage to access the equity in their current home and use it for down payment and closing costs on the new home. A blanket mortgage loan enables borrowers to finance the new home and start building before their old house sells.