A borrower taking out a package mortgage would utilize which types of collateral?

A borrower utilizing a package mortgage would employ both real and personal property as collateral. This type of mortgage is specifically designed to finance the purchase of both types of assets, allowing the borrower to secure a loan that covers not just real estate—such as a home or building—but also personal property, which may include appliances, furniture, or equipment associated with the real estate.

This broader collateral approach is particularly useful in scenarios where the borrower wants to simplify financing for a property along with its necessary contents or improvements, creating a more comprehensive loan structure. By allowing for a combination of real and personal property as collateral, the borrower often benefits from greater flexibility and may find it easier to secure the needed financing.

In contrast, the other options limit the scope of what can be offered as collateral. Real estate only would not encompass the personal property that the borrower might be purchasing. Cash and stocks or bonds do not apply to a package mortgage, as they do not represent the physical assets associated with the property being financed. Thus, the inclusion of both real and personal property clearly represents the essence of a package mortgage.