A blanket
mortgage is but one of about a dozen types mortgages that vie for first
place amongst those seeking out financing. When deciding if this is the
one you want to wrap
you finances in is something only only you can decide. So it helps to
have some facts to
base your selection on.
This type is is usually a first mortgage that is security for the loan
that has been borrowed against the property. It can also be formulated
to borrow against more that one asset at a time, giving the mortgagor
an option that covers more than one piece of real estate at the same
time. Hence the term blanket mortgage sometimes refers to as a blanket
lien or loan that covers almost all varieties of holdings or collateral
owned by the one acquiring the
debt. This lends to the borrowing of legal tender against
more.
Oftentimes this type of mortgage is popular with developers and
builders who purchase
huge lots with the purpose of dividing them into smaller ones to be
sold separately. The blanket lien is good for present and future
property, which is especially appealing to real estate investors or
land developers. Additionally if one buys an apartment in a building
with
a blanket mortgage you may be require to assume a share of liability
for the mortgage if it
is registered against the whole building. Therefore you may have to pay
a larger down
payment with cash because it may be hard to secure a second mortgage to
cover the difference of the purchase price and the previously fixed
amount of the blanket mortgage
that you must assume.
Additionally to finance initial buying of real estate or refinance an
existing blanket debt, a cooperative can use a blanket mortgage, they
may also use one to finance improvements
to projects. Some have even used their principal residence for
additional collateral so they can purchase multiple pieces of property
and have them wrapped under one umbrella mortgage.
So depending on your current needs and your future investment endeavors
a blanket mortgage may be what you are after. You may want to also
learn about
reverse
mortgages.
