What is a chattel mortgage?

A chattel mortgage refers specifically to a loan secured by personal property, meaning that the property used as collateral is movable and not permanently affixed to land, such as vehicles, equipment, or furniture. This type of mortgage allows the borrower to retain possession of the personal property while using it as security for the loan, which is different from real estate mortgages where the collateral is immovable property like land or buildings.

In contrast, a mortgage on real estate property deals solely with fixed assets, making it distinctly different from a chattel mortgage. The reference to no down payment primarily relates to financing options available in various mortgage agreements and does not define a chattel mortgage. Additionally, a type of lease agreement for real estate pertains to rental agreements and does not involve the borrower owning the property outright or using it as collateral for a loan, which again underscores the unique aspect of a chattel mortgage.