Buyer Term: Conventional Mortgage

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Real Estate

Wednesday Buyer Term is Conventional Mortgage: A conventional mortgage is a type of home buyer's loan available through private lenders (such as banks, credit unions, and mortgage companies). Conventional mortgages have fixed interest rates (meaning the rates stay the same throughout the loan's lifetime).

Additionally, due to their lack of government backing, they typically have stricter lending requirements (for example, lenders may require buyers to have excellent income and high credit scores). Borrowers who get a conventional mortgage often make large down payments and don't have an increased risk of defaulting on their loan payment.