What is a package mortgage?

A package mortgage is a type of home loan that combines two or more loans into one package. This can include a primary mortgage as well as a second mortgage or line of credit.

There are several benefits to a package mortgage, including the ability to secure financing for multiple properties at once, potentially getting a better interest rate on the combined loans, and often having lower monthly payments compared to taking out multiple individual loans.

However, package mortgages can also come with risks, such as the potential for higher fees or interest rates, and the possibility of losing equity in multiple properties if one loan defaults.

Overall, package mortgages can be a useful option for some borrowers, especially those looking to finance multiple properties or take advantage of potential cost savings. It is important to carefully consider all aspects of the loan and work with a financial advisor to determine if a package mortgage is the right choice for your specific financial situation.