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LSDefine
Simple English definitions for legal terms
package mortgage
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A quick definition of package mortgage:
A package mortgage is a type of loan where a person borrows money to buy a property and also includes personal property like a fridge or stove. The property is used as security for the loan and the borrower must make regular payments to pay off the debt. If the borrower pays off the loan according to the agreed terms, they will own the property outright. If they don't, the lender can take possession of the property.A more thorough explanation:
A package mortgage is a type of mortgage that includes both real property and personal property, such as appliances or furniture. It is a conveyance of title to property that is given as security for the payment of a debt or the performance of a duty and that will become void upon payment or performance according to the stipulated terms.
For example, a borrower may take out a package mortgage to purchase a home that includes appliances and furniture. The mortgage would cover both the real property and the personal property, and the borrower would make payments according to the agreed-upon terms.
Package mortgages are also known as all-inclusive mortgages or wraparound mortgages.