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A fixed loan and a conventional loan are related but refer to different aspects of a mortgage.
Fixed Loan (Fixed-Rate Mortgage):
A fixed loan refers to a mortgage with a fixed interest rate that remains unchanged throughout the loan term.
Common terms include 15, 20, or 30 years.
Provides predictable monthly payments, making budgeting easier for borrowers.
Can be conventional or government-backed (FHA, VA, USDA).
Conventional Loan:
A conventional loan is a non-government-backed mortgage, meaning it is not insured by FHA, VA, or USDA.
Can have a fixed or adjustable interest rate.
Typically requires a higher credit score and larger down payment than government-backed loans.
Subject to loan limits set by Fannie Mae and Freddie Mac.
Key Difference:
A fixed loan refers to the interest rate structure (unchanging rate).
A conventional loan refers to the type of mortgage (non-government-backed).
A conventional loan can be fixed (fixed-rate conventional loan) or adjustable (ARM – Adjustable Rate Mortgage).
What else can I help you with?
What is the difference between a fha loan and a conventional loan?
An FHA loan has more guidelines and rules than a conventional loan does. An FHA loans are only available on certain houses and you can get a conventional loan on any house if your credit meets the requirements.
What type of mortgage loan has a fixed rate a fixed term and a fixed payment?
Conventional Mortgage
What is the difference in Conventional loan verses credit card loan?
The primary difference between a conventional loan and a credit card loan is that a conventional loan is given to you in one lump sum whereas a "credit card loan" or line of credit can be drawn down as needed rather than in one lump sum. You can find out more about business lines of credit by visiting www.businessloc.com
What is the difference between A variable rate home loan and a fixed rate home loan?
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.
What is a conventional uninsured loan?
What is a conventional uninsured loan?
Is a 10yr conventional arm loan at 6.5 percent a good thing?
Not when you consider what the rate is for a 30 year fixed.
What is the difference between VA mortgage loan interest rate and conventional rates?
VA rates are about the same as FHA. FHA is about the same as conventional or within .25% of conventional. The key with VA is that you don't have any mortgage insurance premiums as you would with FHA and conventional loans when putting a downpayment of less than 20% when purchasing a home. VA is also a zero downpayment loan.
What is the difference between a bank loan and a bank credit?
What is the difference between bank loan and bank credit?
What is conventional loan without PMI ARM?
what is a conventional loan with out p m i
Difference between bank loan and bank overdraft?
These two terms are different.For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.
Is there a difference between jumbo mortgage rates and the rates of a conventional mortgage?
A jumbo mortgage is a loan larger than the conventional mortgage limits. The rates of jumbo mortgages is typically 0.25% to 0.5% higher than traditional mortgage rates.
How much down payment on a conventional loan?
What is the minium percent down for conventional loan?
