Freehold
Financing term
A mortgage that includes both real property and personal property, such as appliances, as collateral.
This term belongs to Financing. The questions below are real items from Freehold's bank that use it - each one cites its source.
Every Freehold question shows why the right answer is right — and cites its source.
A developer financing several lots under a single loan secured by all of the parcels would use a:
Blanket mortgage — A blanket mortgage covers more than one parcel of real property under a single loan, commonly used by developers, and typically includes a partial release clause allowing individual lots to be released as sold.
Source: PSI National Real Estate Exam Content Outline §4 Financing
A loan that finances both real property and certain personal property, such as appliances, within a single mortgage is called a:
Package mortgage — A package mortgage finances both real estate and included personal property, such as major appliances, in one loan, common in new home sales where appliances are sold along with the house.
Source: PSI National Real Estate Exam Content Outline §4 Financing
A homeowner who needs short-term financing to cover a down payment on a new home before their current home sells would most likely use a:
Bridge (swing) loan — A bridge or swing loan is short-term financing that lets a homeowner access equity in their current home to fund the purchase of a new one before the existing home is sold.
Source: PSI National Real Estate Exam Content Outline §4 Financing
See every term in this area: Financing glossary