This is a weird one!
We know all about mortgages and we have a lot of posts about mortgages.
The Package Mortgage is one of the weirdest ones for sure.
Here is the definition of a package mortgage:
A mortgage in which the loan is used to buy a house as well as all furniture and other property in the house.
Another way of putting it is that a package mortgage is: a mortgage covering major items of equipment (such as kitchen appliances) in addition to the house and entire lot.
Here is a very good legal definition of a package mortgage:
A package mortgage is a loan secured by real estate and in which the property and furnishings are included in the purchase price of the home. The personal property included in the loan, such as a fridge, washer and dryer, etc., make the value of the home go up, and therefore increases the amount of the loan. The personal property is used as collateral, and cannot be sold without the approval of the lender.
A package mortgage according to Dummies.com… yes, we said it. Dummies dot com, looks like this:
A package mortgage is a loan that covers real estate and personal property being sold with the real estate. The buyer of a house in which furniture is being included in the sale may want to apply for a package loan. For example, this loan can be used to purchase a furnished vacation home.
Finally, a package mortgage according to Study.com is as follows:
A package mortgage is when the mortgage loan amount is secured by a piece of real estate in addition to the actual property and furniture of the property. Typically, the loan amount is higher because the package mortgage includes the house, electronic appliances (such as the fridge, washer and dryer, etc.), and furniture, among other personal property.