In a packaged mortgage, which of the following is typically covered?

In a packaged mortgage, the financing arrangement typically covers both real estate and personal property. This type of mortgage is designed to include not only the purchase of the physical property, such as the land and any buildings, but also personal property that is considered essential to the value of the purchase or that is meant to be used with the real estate.

For example, in the case of a home purchase, a packaged mortgage might include the house itself (the real estate) along with appliances, furniture, and other personal property that a buyer might want to include in the mortgage financing. This can make the transaction smoother for buyers, as they can finance multiple components of their new home in one consolidated loan.

In contrast, a real estate-only financing option would only cover the land and buildings, excluding any personal items that may be important for the homeowner. Similarly, personal property financing would not involve real estate at all, focusing solely on movable items rather than the physical location. Landscaping services, while important for property maintenance and aesthetics, do not fall into the category of either real estate or personal property and would typically be handled separately from a mortgage financing perspective.