Conventional Mortgage

Written by Joy MacKay
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The most common type of mortgage is called a conventional mortgage. It is a loan agreed upon between the borrower and the lender alone. This means that a conventional mortgage does not require government intervention.

How a Conventional Mortgage Works

With a conventional mortgage, you are required to pay 20 percent of the property value up front. The lender then loans you the remaining 80 percent. With private mortgage insurance, you might be able to keep your initial payment as low as 5 percent.

Private mortgage insurance protects the lender in the case that the deal falls through. It shows your commitment to the lender, and helps secure your conventional mortgage. You will want to compare terms as well as rates when deciding which lender to go with.

Conventional Mortgage Terms Online

Thanks to the age of the Internet, you can find a plethora of information on conventional mortgages by looking online. From the comfort of your own home, you can learn more about the different types of mortgages, and decide which lender is right for you. Make sure that you are choosing a recommended online source, so that you have the confidence of knowing that others have received excellent service with your lender.


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