A Chattel Mortgage is a loan used to buy moveable personal property such as a prefabricated house or construction equipment. The term "chattel" comes from the Latin word for "property." A chattel mortgage is similar to a traditional mortgage in that it secures the property against default on the loan. However, because it is used to purchase an item that can be moved, a chattel mortgage typically has fewer restrictions on how the property can be used. This makes it an ideal option for purchasing items like vehicles or heavy machinery.One advantage of using a chattel mortgage instead of other types of loans is that you may be able to get approval more quickly. This can be especially helpful if you need to purchase something right away and don't have time to wait for traditional financing approval processes. Another benefit is that interest rates on chattel mortgages are often lower than those on other types of loans, making them more affordable in the long run.If you're thinking about purchasing an item that would fall under the category of movable personal property, consider getting a chattel mortgage instead of taking out another type of loan.
