Which of the following terms refers to a mortgage that combines multiple properties under a single loan?

The term that refers to a mortgage that combines multiple properties under a single loan is known as a blanket mortgage. This type of mortgage is typically used by developers and investors who wish to finance more than one property, allowing them to cover several distinct parcels under one agreement. A blanket mortgage can facilitate quicker and simpler financing processes, as it consolidates multiple loans into a single obligation.

In the context of mortgage lending, a blanket mortgage is particularly advantageous because it provides the borrower with ease of management for different properties, potentially allowing for better cash flow and easier accounting. It often includes a release clause, which lets the borrower sell off individual properties over time while still maintaining the mortgage on the remaining properties.

This contrasts with other types of loans; for example, a bridge loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one. A balloon loan features a large final payment due at the end of its term, rather than being framed around multiple properties. Package mortgages are designed to include both real property and personal property in one financing arrangement but do not imply the same structure as a blanket mortgage that specifically targets multiple properties.