Conforming mortgage loans Cont.

These contracts tend to be for people who plan to live in the same home for many years because conforming mortgage loans are typically given at a fixed rate for either 15 or 30 years. The fixed rate means that the homeowner will pay the same payment every month for the entire life of the loan. Those who move a lot will want to stick with a contract with a variable interest rate. The benefit for paying the higher payment through a conforming mortgage loan is to gain lower interest rates and a lower risk of foreclosure.