package mortgage

Package mortgage

A mortgage on a house and property in the house.

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.

package mortgage

A mortgage that includes financing for real estate and for personal property. The plan is usually promoted as beneficial to consumers because it allows them to buy appliances, for example,at low mortgage interest rates and pay just a small amount each month,as compared to typical finance or credit card companies that charge higher interest rates and provide shorter terms for payoff, leading to higher monthly payments. Promoters also tell consumers that with a package mortgage, interest payments for appliances are deductible from taxes, while finance company or credit card interest is not deductible.

References in periodicals archive ?
They can package mortgage loans in pools with specified risk profiles and match them with lenders who have similar risk profiles.
Financial institutions that underwrite or package mortgages will be better able to rate borrower creditworthiness and property risk in view of the impact of future flooding on property values and borrowers' ability to repay their loans.
A new package mortgages totaling $3,500,000 on a 22-unit, 6-story multifamily building on East 75th Street in New York, NY.
However, Frank said he did not believe regulators should do away with securitized mortgages, rather that legislation should require that companies that package mortgages into bonds should retain a piece of the original mortgages.