Your rate will remain the same for the entire term of the loan, which is usually between 10 and 30 years. If you can make a 20% downpayment, you will not need to pay additional mortgage insurance. Conventional loans are often used for refinancing. For example, a homeowner paying off an FHA loan may consider refinancing with a conventional loan to get a better rate and eliminate their mortgage interest payments. These loans are also flexible in that they can be used to finance both primary residences and rental properties.
For a fixed period of time at the beginning of your loan, you will only be required to pay the interest on the loan. For most of these loans, you pay interest only for the first 10 years of a 30-year mortgage. These are especially useful for people with inconsistent income. For example, a seasonal business owner who only operates during the summer may prefer to pay interest-only during the winter.
Your interest rate is fixed for a specified period of time, after which it regularly resets (on yearly, or even monthly, basis). This may be an effective option for those who are planning to pay off the full loan within a certain amount of time as well as those who have the cash flow to handle fluctuating rates.