Blanket Mortgage Pros
CASH TO INVEST
Having one mortgage saves you the cost of multiple lender fees associated with closing the loan: origination fees, processing fees, service fees, third party fees, and more, leaving you more money to invest in other projects. Additionally, many blanket mortgages operate with a release clause, which allows you to sell a property without having to use the sale proceeds to pay off the loan.
BETTER INTEREST RATES
Multiple mortgages will undoubtedly carry a number of different interest rates, some of which might be unfavorable. A blanket loan refinance provides the opportunity to bring everything together under one interest rate.
Blanket Mortgage Cons
HIGHER DOWN PAYMENT
A lender offering a blanket mortgage may be putting themselves at greater risk, hence asking for a higher down payment.
When a loan is structured as a balloon payment, the borrower must pay off the entire loan within a shorter amount of time