Meaning & use
conventional mortgage
Last updated
Meanings
nouncountable
A home loan from a private lender that is not insured or guaranteed by a government agency.
Grammar: Countable; use 'a conventional mortgage' or 'conventional mortgages' when talking about one or more.
Patterns
- get a conventional mortgage
- qualify for a conventional mortgage
- a conventional mortgage rate
They chose a conventional mortgage because they had a large down payment.
A conventional mortgage typically requires a higher credit score than a government-backed loan.
The bank offered her a conventional mortgage with a fixed interest rate.
nouncountable
A standard type of mortgage that follows usual lending practices, as opposed to an unusual or specialized loan.
Grammar: Often used in contrast with 'subprime' or 'jumbo' loans; still countable.
Patterns
- a conventional mortgage versus a jumbo loan
- the conventional mortgage market
In this region, a conventional mortgage is any loan that meets the guidelines of the major lenders.
The report compared conventional mortgages with subprime loans.
Word forms
| plural | conventional mortgages |
|---|
Common combinations
- conventional mortgage rate
- The conventional mortgage rate fell slightly last week.
- conventional mortgage lender
- She applied with a conventional mortgage lender.
- conventional mortgage loan
- A conventional mortgage loan is not backed by the federal government.
- conventional mortgage insurance
- Private mortgage insurance is often required for a conventional mortgage.
Synonyms and how they differ
- standard mortgage
- A broader term that can refer to any usual mortgage, including government-backed ones; 'conventional mortgage' specifically excludes government insurance.
- private mortgage
- Focuses on the lender being private rather than the loan type; 'conventional mortgage' emphasizes the absence of government backing.
Opposites
Word family
- conventional adjective
- Following accepted customs or standards; not unusual.
- mortgage noun
- A loan used to buy property, with the property as security.
- mortgagee noun
- The lender in a mortgage agreement.
- mortgagor noun
- The borrower in a mortgage agreement.
Commonly confused: conventional mortgage or conforming loan? conventional mortgage or FHA loan?
conventional mortgage vs conforming loan
A conforming loan meets specific size limits set by Fannie Mae and Freddie Mac; a conventional mortgage may or may not conform.
conventional mortgage vs FHA loan
An FHA loan is insured by the Federal Housing Administration; a conventional mortgage is not government-insured.
Practice
Which sentence uses 'conventional mortgage' correctly?
Choose one answer.
Choice 0 is correct because a conventional mortgage is not government-insured. Choice 1 is wrong because FHA loans are government-backed. Choice 2 is wrong because conventional mortgages are not government-insured. Choice 3 has a subject-verb agreement error: 'mortgage' is singular and needs 'is'.
Make it your own
Write a sentence using “conventional mortgage”, then check it and compare it with the examples above.