Legal Definitions - package mortgage

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.