A Florida mortgage that includes personal property is called a:
Question & Answer
Review the question and all answer choices
Package mortgage
Blanket mortgage
A blanket mortgage covers multiple properties, not personal property. It's used by investors who want to finance several parcels with one loan, rather than including personal property in the security.
Wraparound mortgage
A wraparound mortgage involves a new loan that 'wraps around' an existing mortgage, where the borrower makes payments to the new lender who then pays the original lender. It doesn't involve personal property as security.
Purchase money mortgage
A purchase money mortgage is simply a mortgage used to finance the purchase of real property. It doesn't specifically include personal property as part of the security.
Why is this correct?
A package mortgage is correct because it specifically refers to a mortgage that includes both real property and personal property as collateral for the loan. This type of mortgage finances the property and its associated fixtures or appliances in a single loan instrument.
Continue Learning
Explore this topic in different formats
More Real Estate Financing Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.