What type of mortgage is secured by personal property rather than real estate?

A chattel mortgage is a type of loan that is secured by personal property rather than real estate. In this arrangement, the borrower receives financing to purchase movable items, such as cars, machinery, or furniture, which serve as collateral for the loan. This is different from a traditional mortgage, which is secured by real property like a house or land.

Given that a chattel mortgage specifically focuses on personal property, it addresses scenarios where the loan is tied to physical assets that are not fixed to land. This makes it particularly useful in various industries, such as agriculture or automotive, where equipment and vehicles are essential for operations.

Conventional mortgages typically involve real estate and are not suitable for securing personal property. Similarly, subprime mortgages pertain to loans granted to borrowers with lower credit ratings and are also centered around real estate. Fixed-rate mortgages refer to loans with a consistent interest rate over the life of the loan, primarily applicable to real property.

Thus, the key factor in understanding why the correct answer is chattel mortgage lies in recognizing its specific association with personal property, distinguishing it from other mortgage types that primarily focus on real estate.