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A conventional loan is simply a mortgage that is not insured or guaranteed by the federal government.  A conventional loan can either be a fixed or adjustable rate mortgage and adheres to a set of guidelines established by Fannie Mae and Freddie Mac.  On a fixed rate conventional loan the interest rate is set and will not adjust for the term of the loan, an adjustable rate mortgage has a fixed rate for an introductory period and then adjusts based on a variety of factors. Deciding whether to go with a fixed or adjustable rate depends on how long you plan to live in the home and your mortgage broker can go over the pros and cons of each.