FinanceIntermediateCalifornia Exam

A 'blanket mortgage' is most commonly used in which situation?

ARefinancing a single-family home
BFinancing multiple properties under one loanCorrect
CObtaining a home equity line of credit
DFinancing manufactured homes

Why Financing multiple properties under one loan Is Correct

Answer B: Financing multiple properties under one loan

A blanket mortgage covers multiple properties under a single loan, commonly used by developers building and selling individual lots or homes. A release clause allows individual properties to be released from the lien upon partial repayment.

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

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