What type of mortgage includes both real and personal property?

A package mortgage is designed to encompass both real property, such as land and buildings, and personal property, which may include items like furniture, appliances, and other goods that can be included in a sale. This type of mortgage is particularly beneficial in situations where a borrower is purchasing a home that comes furnished or with other personal items.

In real estate transactions, package mortgages simplify the financing process by allowing the buyer to secure one loan that covers all the elements of the purchase rather than having to seek separate financing for personal property. This can make the overall transaction more streamlined and appealing to buyers looking for a comprehensive solution.

In contrast, other types of mortgages do not typically include both elements. A conventional mortgage primarily focuses on real estate without accounting for personal property. A blanket mortgage covers multiple properties or lots but does not necessarily include personal property. An adjustable-rate mortgage specifically refers to the interest rate structure on a loan but does not dictate the types of property included in the loan. Therefore, a package mortgage is the only option that correctly signifies the inclusion of both real and personal property.