A conventional mortgage is a type of mortgage that meets the funding criteria of Fannie Mae and Freddie Mac; about one-third to one-half of all mortgages are conventional mortgages. Conventional mortgages may be either fixed rate or adjustable rate, and may have a variety of terms to meet local needs. Usually, conventional mortgages carry a lower interest rate than unconventional mortgages because they are considered to be lower risk. Nearly all conventional mortgages will eventually be sold to a secondary financial institution-that is, if you take out a conventional mortgage with Company "A", you can expect that over the life of the mortgage you will be dealing with Company "B", then Company "C", and so forth. This transfer process does not alter the legal terms of the mortgage, though it may be inconvenient.