FinanceIntermediateAlaska Exam

A 'blanket mortgage' covers:

AA borrower's credit history across all lenders

BMultiple parcels of property under a single mortgageCorrect

CA mortgage insured by multiple government agencies

DA mortgage that covers both the home and its contents

Why Multiple parcels of property under a single mortgage Is Correct

Answer B: Multiple parcels of property under a single mortgage

A blanket mortgage (or blanket lien) covers two or more parcels of real property under a single mortgage instrument. It is commonly used by developers who purchase multiple lots or parcels with a single construction loan.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

Key Finance Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Loan-to-Value Ratio (LTV)

The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.