In real estate finance, a package mortgage is a type of mortgage that secures not only the real property but also the improvements and certain movable equipment or appliances associated with the property. This allows both real and personal property to be included as collateral under a single loan.
Package mortgages are commonly used in residential financing when appliances or other items are sold together with the home. By combining all components into one mortgage, the lender simplifies the financing structure while ensuring comprehensive security for the loan.
