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What is the difference between a mortgage and a chattel mortrgage?

User SamYonnou
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Final answer:

A mortgage is a loan used to purchase a house, while a chattel mortgage is used to purchase personal property.

Step-by-step explanation:

A mortgage is a loan that a person takes out to purchase a house. It is a secured loan where the property being purchased acts as collateral for the loan. The borrower makes regular payments to the lender over a specified period of time.

A chattel mortgage, on the other hand, is a loan used to finance the purchase of movable personal property, such as a car or equipment. Unlike a mortgage, the collateral for a chattel mortgage is the item being purchased, not the property itself.

In summary, the main difference between a mortgage and a chattel mortgage is the type of asset being financed. A mortgage is used to purchase real property, while a chattel mortgage is used to purchase personal property.

User Fabian Damken
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