Chattel Mortgage

Are you looking for a mortgage for your moveable property? Car Loan Hobart can assist you with a chattel mortgage that will meet your needs as well as your budget. In the section below, we will go over the definition of a chattel mortgage, as well as the pros and cons of such a mortgage. Call us today for expert service on a chattel mortgage.

What is a chattel mortgage?

Let’s take at the definition of a chattel mortgage and when you would use one in this section. When it comes to loans and mortgages there are a lot of options regarding the purchasing of real estate or movable pieces of equipment. But, when there are so many options available, it may be hard to decide on a solution that best suits your situation. So, if you are looking to purchase movable equipment or a mobile home, a chattel mortgage may be a good option for you. This mortgage is usually used by borrowers that want to purchase a home that is not attached to the land. The definition of a chattel mortgage can be explained in this way; a traditional mortgage is a fixed property that secures the loan whereas a chattel mortgage is secured by a mobile piece of personal property. These chattel mortgages typically come with shorted terms and also smaller loan amounts. The interest rates can be much higher than that of a traditional mortgage.

What are chattel mortgages used for?

In this section, we will look at some common scenarios where it makes sense to take out a chattel mortgage. Chattel mortgages can be used for manufactured homes, also known as mobile homes. You can a chattel mortgage for a modular home as well. A modular home is usually built-in factories but is put together in sections, and then the home is fully constructed on-site. Individuals and business owners can also utilize chattel mortgages to purchase heavy movable equipment. This arrangement allows the borrower to use the equipment while still making the most of their cash flow. The chattel mortgage can be used in instances like these because the borrower does not own the land where the equipment or mobile home is on. But the mortgage remains intact even if the home or equipment is moved to a different location.

Pros and Cons

Before deciding on a chattel mortgage, you must understand all of the facts, and our professionals at Car Loan Hobart will always go through them with you. The advantage of this type of mortgage is that it comes with shorter loan terms than a traditional mortgage. The processing fees on a chattel mortgage are also lower. The interest rate on a chattel mortgage is tax-deductible. The cons of the chattel mortgage are that the interest rates are maybe higher than a traditional mortgage. Then if you fail to make payments, you could lose your property to the lender.

Our Services

At Car Loan Hobart, we will first assess your situation and help you decide if a chattel mortgage is the best option for you. We will go over the advantages and disadvantages with you in detail to ensure that you make an informed decision about a chattel mortgage. We also ensure that you get a chattel mortgage that is beneficial to you and one that suits your budget.