A buyer bought a vacation home at Lake Geneva, WI. He purchased the home with a mortgage which included the boat, the dock, the boat house and the home. What type of mortgage did the owner receive?
The mortgage received by the owner was a package mortgage.
Explanation:
A mortgage that consists of multiple assets makes up a package of the inclusive assets. When there are two more items kept for mortgage, all the items in the mortgage are treated as a single package.
Once the mortgage package is received, the owner is authorised to use the assets included in the package as long as the amount of mortgage is paid.
