Which mortgage includes both real and personal property?

A package mortgage includes both real and personal property, making it distinctive among mortgage types. This type of mortgage is particularly useful for buyers who want to finance not just the real estate but also fixtures and personal property items that are included in the sale. For instance, a package mortgage might cover the purchase of a home along with furniture, appliances, or other valuables, providing a more comprehensive financing solution.

This type of financing option is beneficial in scenarios where the buyer wants to ensure that all essential items are part of the purchase agreement, simplifying the transaction and potentially saving costs associated with multiple loans or financing arrangements.

In contrast, conventional mortgages typically cover only real property, which excludes personal items. First mortgages and reverse mortgages follow similar patterns; the former usually finances real estate only, while the latter is designed for those aged 62 or older who wish to access home equity without requiring the inclusion of personal property. Therefore, the package mortgage stands out as the correct choice when considering the inclusion of both real and personal property in a single financing agreement.