Home  >  Home Mortgage Loans  >  Conventional Mortgage

A couple enjoys their new home

Conventional Mortgage

A conventional mortgage is a type of mortgage in which the terms and conditions of the loan meet the criteria set forth by Fannie Mae and Freddie Mac. A conventional mortgage can be defined as either a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM). A fixed rate mortgage is classified as having the same principal and interest payment for the life of the loan, while an ARM is identified by having a fixed rate for only a specified period of time before the rate becomes variable, depending on market conditions.

Many times, people confuse a conventional mortgage with a conforming mortgage. However, a conventional mortgage can be both conforming or non-conforming (jumbo). Because conventional loans are set by Fannie Mae and Freddie Mac, the easiest way to identify if a loan is conventional or not is to know whether or not the loan is government insured. Typical government-insured loans are FHA (Federal Housing Administration), VA (Veterans Affairs) or USDA (United States Department of Agriculture) Rural Development loans. Fannie Mae and Freddie Mac are considered stockholder-owned corporations.

The most common conventional mortgage terms are fixed for 30 and 20 years, however, Total Mortgage offers the additional flexibility of fixed-rate loans for 10-, 15-, 25- and 40-year terms. Total Mortgage offers 3/1, 5/1, 7/1 and 10/1 ARMs.

For more details on conventional mortgages, call 877-868-2503 to speak to a Total Mortgage expert now

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

Get a Fast, Free, No Obligation
Fixed Rate Quote Today

  • Form Logos