895 - What Is A Blanket Mortgage And Does It Make Sense To Have? by Scott Gibson

A blanket mortgage is useful for real estate investors with a large real estate portfolio. Also called a blanket loan, the mortgage consolidates several separate loans into a single mortgage. For many experienced investors, having one loan payment makes juggling several mortgage payments and interest rates more straightforward. However, arranging a blanket mortgage loan is not always the best financing option. For example, loans are harder to secure. And putting individual mortgages under one “blanket” can put all properties in the portfolio at risk.   When does it make financial sense to put separate mortgage loans into a single loan? Are there situations when it is best to keep individual loans separate and not consolidate them into an entire mortgage? This article explores the pros and cons of using blanket loan refinance to manage multiple properties in a real estate portfolio. Learn more about your ad choices. Visit megaphone.fm/adchoices