Lenders offer loans of their own deposits, but usually make loans and sell them to investors. Historically, loans made to be sold have followed strict guidelines, but mortgage products with more flexible guidelines have been developed. Most mortgages generally require down payments as a firm commitment from the buyer to the lender of the buyer's intention to repay the loan. Some lenders may be more restrictive. Types of Mortgages Frequently mortgages are described by the type of insurance they carry.
Private companies offer mortgage insurance too.
Conventional loan is the name given to non-government insured loans. The interest rate is thel ender's charge for your use of the funds. Lenders charge a rate based on their current cost of funds. When comparing lenders consider the rate, the term, and points. The most common type of mortgage currently is a 30-year fixed interest rate mortgage insured by the Federal government.