When should you use a package loan?

You may consider a package loan anytime you have to make a group of correlated purchases and need financing. For example, if you are purchasing a home, you may also need to purchase furniture, window coverings and floor coverings. This is particularly true with your first home or if you are buying a newly constructed property. Rather than taking a loan for each item you need, which can become pricey and confusing to repay, consider taking a larger mortgage loan that would package each purchase together. This would essentially give you a mortgage and a home equity line of credit in one package.