PSI Oklahoma Real Estate Practice Test

Which of the following best describes a "Blanket Mortgage"?

1. A mortgage that covers more than one piece of property

2. A mortgage secured by a single piece of property

3. A mortgage that includes personal and real property

4. A mortgage that provides tax incentives

The correct answer is: A mortgage that covers more than one piece of property

A blanket mortgage is best described as a mortgage that covers more than one piece of property. This type of financing is often used in commercial real estate and development projects, where a borrower needs to secure funds for multiple properties or lots simultaneously. By combining multiple properties under one mortgage, borrowers can simplify the financing process and potentially benefit from fewer closing costs, streamlined payments, and higher loan amounts since lenders recognize the additional collateral provided by the multiple properties. While other options describe different types of mortgages, they do not capture the essence of a blanket mortgage. A mortgage secured by a single piece of property refers specifically to a traditional mortgage, and a mortgage that includes personal and real property describes a package mortgage. Additionally, a mortgage that provides tax incentives is not a standard description for any mortgage type, including blanket mortgages. Thus, the defining characteristic of a blanket mortgage is its coverage of multiple properties, making the chosen answer accurate.