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Conventional Fixed Rate Mortgage
What Is a Conventional Fixed Rate Mortgage?
A conventional fixed rate mortgage is a home loan issued by a private lender with an interest rate that remains constant for the entire loan term.
It is not insured by a government agency and typically conforms to guidelines set by Fannie Mae and Freddie Mac.
Why It Matters in a Mortgage
This structure offers:
- Stable monthly principal and interest payments
- Predictable long-term cost
- Potential PMI removal once equity increases
It is one of the most common mortgage types in the United States.
How It Works
Loan amount and rate are fixed at closing.
Payments remain stable throughout the term.
Conventional Fixed vs. Government-Backed Fixed
Conventional → No federal insurance
FHA/VA → Government-backed
FAQs About Conventional Fixed Rate Mortgages
Is PMI required?
If down payment is under 20%.
Are rates competitive?
Often for strong borrowers.
Can terms vary?
Commonly 15 or 30 years.
Related Terms
