Which term describes a mortgage secured by more than one parcel of real estate?

• A. Wraparound mortgage
• B. Open-end mortgage
• C. Blanket mortgage
• D. Reverse mortgage

Answer: (C)

A blanket mortgage is a loan secured by more than one parcel of real estate. This arrangement allows a borrower to put several properties under a single lien, which is especially useful for developers or investors who own multiple lots or buildings and want to finance them with one loan. The lien typically covers all included parcels, and there’s usually a release clause that lets lenders release individual parcels from the lien as those properties are paid for or as development progresses.

This differs from other types of financing: a wraparound mortgage involves a new loan that “wraps” around an existing loan, not necessarily tied to multiple parcels; an open-end mortgage lets the borrower borrow additional funds under the same loan but doesn’t imply multiple properties; and a reverse mortgage provides payments to a homeowner (often seniors) against home equity, not multiple parcels under one lien.