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A conventional mortgage, also known as a low-ratio mortgage, is a mortgage loan that is no more than 80% the property’s appraised value. When you make a down payment of 20% or more, you are getting a conventional mortgage.
Mortgages with less than a 20% down payment are called high-ratio mortgages. Mortgage default insurance is not required by law for conventional mortgages, as it is with most high-ratio mortgages.
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