Question

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?

Answer 1

The mortgage received by the owner was a package mortgage.

Step-by-step 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.