Package Mortgage

Definition: A package mortgage finances a purchase using real property and specified personal property as collateral.

Example

Financing for a furnished rental property includes the land, building, and identified furniture.

Keep the distinction clear

This is different from a blanket mortgage covering multiple real estate parcels. Personal-property security requirements also need attention.

Related terms

Blanket Mortgage · Personal Property · Collateral

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: FREC Course I syllabus: mortgage instruments and clauses

Pronunciation (US): PAK-ij MOR-gij (capitals show stress)

Pronunciation reference: Merriam-Webster