In a mortgage where multiple properties are covered, what is this called?

In real estate financing, when a mortgage covers multiple properties, it is termed a blanket mortgage. This type of mortgage allows a borrower to secure a loan that encompasses more than one piece of real estate, which can be beneficial for investors or developers who own several properties and wish to manage them under a single loan.

A blanket mortgage is particularly advantageous because it simplifies the financing process, often resulting in lower closing costs and reduced administrative overhead compared to obtaining separate loans for each property. When any of the properties within the blanket mortgage are sold, the loan can be partially paid down, which is often more flexible than traditional mortgages.

In contrast, vendor take-back mortgages involve the seller of a property providing financing to the buyer, rather than covering multiple properties. Interest-only mortgages allow borrowers to pay only interest for a certain period, providing no principal reduction, which doesn't pertain to property coverage. Principal plus specified interest mortgages include a structure where both principal and interest payments are made, but again, this does not relate to multiple properties under one loan. Thus, the blanket mortgage is the correct term for financing that includes several properties.