Conventional Mortgage
Is a mortgage that is not insured or guaranteed by the federal government (FHA or VA). The terms of the loan adhere to conventional standards within legal limit, by mutual consent of the lender and borrower. Although it is not mandatory most conventional loans conform to Fannie Mae and Freddie Mac guidelines.
Conventional mortgages are made by banks and other lending institutions. The interest rate does not change during the entire term of the loan, and are available in 15 year or 30 year terms. These loans are frequently known as Fixed-Rate Mortgages (FRM).
Conventional mortgages are the most common and represent the majority of home mortgages. They are the easiest to understand with the least bells and whistles.