Conventional Mortgage
A type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages.

Investopedia Says:
The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market. Many conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).

Related Terms:
Assumable Mortgage
Conforming Loan
Conforming Loan Limit
Deed Of Release
Fannie Mae
Freddie Mac
Graduated Payment Mortgage
Mortgage
Mortgage Constant
Owner Financing

• Non-Deliverable Swap (NDS)
• Non-Directed Order
• Nondischargeable Debt
• Non-Disclosure Agreement (NDA)
• Non-Disclosure Agreement (NDA)
• Nondiscrimination Rule
• Nonelective Contribution
• Non-Equity Option
• Non-Farm Payroll
• Non-Financial Asset
• Non-Fluctuating
• Nonforfeiture Clause
• Non-Interest-Bearing Current Liability (NIBCL)
• Non-Interest-Bearing Current Liability (NIBCL)
• Non-Marginable Securities
• Non-Negotiable
• Non-Objecting Beneficial Owner (NOBO)
• Non-Owner Occupied
• Nonperforming Loan (NPL)
• Nonperforming Loan (NPL)
• Nonprofit Organization
• Non-Qualified Deferred Compensation (NQDC)
• Non-Qualified Deferred Compensation (NQDC)
• Non-Qualified Distribution
• Non-Qualified Stock Option (NSO)