Which of the following is true regarding conventional mortgages?
A)They require a down payment of at least twenty-five percent.
B)They require a down payment of at least twenty percent.
C)They receive more favourable interest rates for the buyer.
D)They are a form of closed mortgage.

Question

Quizplus · Accepted Answer

Conventional mortgages typically require a down payment of at least 20% of the purchase price. This is a key characteristic that distinguishes them from FHA or VA loans, which may allow for lower down payments but come with additional requirements and fees. Interest rates for conventional mortgages may vary based on factors such as credit score and loan term, but there is no inherent advantage or disadvantage compared to other types of mortgages. Finally, conventional mortgages may be either closed or open, depending on the borrower's preference and the terms of the loan.

Which of the Following Is True Regarding Conventional Mortgages