Which of the following features applies to a conventional or conforming mortgage?

A conventional or conforming mortgage is designed to meet specific guidelines set by government-sponsored entities, primarily Fannie Mae and Freddie Mac. The correct choice captures several key features associated with this type of mortgage.

Homeowners being able to refinance if interest rates decrease is indeed a feature of conventional mortgages. This allows homeowners to take advantage of lower interest rates by refinancing their existing mortgage, potentially leading to reduced monthly payments and interest expenses over the life of the loan.

The fixed interest rate characteristic is also a hallmark of traditional conventional mortgages. A fixed-rate mortgage ensures that the interest rate remains constant throughout the life of the loan, providing predictability in monthly payment amounts. This contrasts with adjustable-rate mortgages, which can fluctuate based on market conditions.

Furthermore, it is generally observed that the interest rates on conventional fixed-rate mortgages are higher than those of some adjustable-rate mortgages at the outset. Adjustable-rate mortgages often start with lower introductory rates that can increase after a specified period, which can make them seem more attractive initially, but they also come with the risk of increasing payments down the line.

Having these three features—refinancing options, fixed interest rates, and typically higher initial rates compared to adjustable-rate options—clearly points to the conclusion that all of these statements collectively