Which type of mortgage is considered a common conventional loan?

A fixed-rate 30-year mortgage is widely recognized as a standard type of conventional loan. This kind of mortgage features a fixed interest rate throughout the loan's life, making it predictable in terms of monthly payments and providing stability for borrowers. Borrowers often choose this option because it offers a long repayment period, which can result in lower monthly payments compared to shorter-term loans. Additionally, fixed-rate mortgages are popular among those who anticipate maintaining their home for several years, as it allows them to lock in a rate that will not change over time.

The other types of mortgages mentioned, such as the fixed-rate 15-year mortgage, variable-rate mortgage, and interest-only mortgage, have different characteristics that may serve specific financial strategies or needs, but they do not represent the conventional loan that is most commonly utilized in the market. A fixed-rate 15-year mortgage provides a shorter term and higher payments, a variable-rate mortgage can fluctuate with market rates, and an interest-only mortgage allows for lower initial payments but can lead to higher costs over time when principal payments begin.