Finance

A 'blanket mortgage' in Arizona is secured by:

APersonal property only

BMultiple parcels of real property under one mortgage instrument✓ Correct

CBoth real and personal property

DAn entire neighborhood through community assessment

Explanation

A blanket mortgage covers multiple parcels of real property under a single mortgage instrument. It is commonly used by developers who want to pledge several lots as collateral, with a partial release clause allowing individual lots to be released as they are sold.

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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.

Amortization

The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

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.