A conventional mortgage is a mortgage where the borrower down payment or equity was at least 20% at the start of the mortgage contract.
Conventional mortgages are not insured and therefore are not insured by a mortgage default insurance company. The mortgage rate for conventional mortgages are usually higher since the mortgage isn’t insured.
With conventional mortgages the mortgage isn't insured by a mortgage default insurer. If you default on your mortgage,the lender isn't guaranteed their payment so they charge a higher premium for the money they are lending?
If the value of your home is less than $1,000,000.00 when you enter a mortgage contract with your lender even if its a conventional mortgage your lender may pay the insurance fee to protect them in the event of default. They will still charge you a higher rate but they will pay the insurance premium.