A Blanket Mortgage covers multiple properties on the same loan
...... unit of the property as long as certain percentage of the entire debt is paid off.
The blanket mortgage is a way to do all of your financing with one mortgage application. It covers both current properties that can be used as collateral and potential properties that will arise once a plot of land is developed.
Individual homeowners can use blanket mortgages to cover construction of a new home while they are trying to sell their existing property. Once the old property is sold off, the blanket loan is reduced by the dollar amount of equity in the previous home. Some lenders will allow you to pay interest only on the amount that is budgeted for construction of the new property.
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