Finance (alternative)
In Maryland, a 'blanket mortgage' covers:
AAll loans made by one lender to one borrower
BMultiple parcels of land under a single mortgage instrument✓ Correct
CA mortgage that covers both the land and the building
DA government-guaranteed mortgage program
Explanation
A blanket mortgage covers two or more parcels of real property under one mortgage. Developers commonly use them to finance multiple lots with a 'release' clause for individual lots as they are sold.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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