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Which loan arrangement provides not only for a loan on the real estate but also the personal property—including furniture and kitchenware?

a) Chattel mortgage
b) Blanket mortgage
c) Package mortgage
d) Reverse mortgage

1 Answer

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Final answer:

A package mortgage is a loan arrangement that includes real estate and personal property including furniture and kitchenware.

Step-by-step explanation:

The loan arrangement that includes not only a loan on the real estate but also the personal property, including furniture and kitchenware, is known as a package mortgage. This loan covers both real and personal property and provides financing for a home together with all the personal property included within its boundaries. Other types of loans mentioned, such as chattel mortgage, blanket mortgage, and reverse mortgage, have different structures and purposes. A chattel mortgage is secured by movable personal property, a blanket mortgage covers multiple pieces of real estate, and a reverse mortgage is designed for older homeowners to borrow against the equity in their home.

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