What is a package mortgage primarily used for?

A package mortgage is primarily used to finance personal property along with real estate. This type of mortgage allows a borrower to secure a loan that covers both the real estate aspect—such as a home or commercial property—and the associated personal property, like furniture, appliances, or equipment that may be included in the sale.

The flexibility of a package mortgage makes it particularly appealing for buyers who are looking to acquire a property that includes various personal items, allowing them to avoid separate financing for those personal assets. This can streamline the purchasing process, making it simpler for the borrower to make one unified payment for those items alongside their real estate.

In contrast, the other options focus on different financial needs: financing multiple parcels of land would typically involve a different type of loan suited for land investments; consolidating debts refers to gathering together various debts into one single payment, usually requiring a different structure; and refinancing existing loans usually pertains to adjusting the terms of already secured loans rather than acquiring new assets.