What is a blanket mortgage?

A blanket mortgage is designed to finance multiple parcels of real estate under a single loan agreement, making option C the correct choice. This kind of mortgage is particularly beneficial for developers or real estate investors who want to purchase several properties at once, as it simplifies the financing process by combining separate loans into one.

This type of mortgage typically includes a release clause, allowing for individual parcels to be sold off while still maintaining the overall mortgage. This aspect is particularly useful in real estate development, where a developer may wish to sell individual lots after construction while keeping the broader financing intact.

The other options describe different types of mortgages or loans unrelated to the defining characteristics of a blanket mortgage. A mortgage that covers just one property pertains to traditional mortgages, and a type of mortgage with no collateral could refer to unsecured loans, which are not typically used in real estate transactions. Lastly, a loan that cannot be paid off early describes certain types of loans with prepayment penalties, which does not capture the essence of a blanket mortgage.