Mortgage Loan Originator Licensing Practice Test 2025 – Complete Exam Prep

The statement about fixed-rate loans being available both conventionally and nonconventionally is accurate. Fixed-rate loans can be obtained through conventional financing, which is not backed by the government and typically adheres to guidelines set by Fannie Mae and Freddie Mac. On the other hand, nonconventional fixed-rate loans refer to those that are backed by government programs, such as FHA or VA loans, which often have more flexible lending criteria.

This variety allows borrowers a range of options depending on their financial situations and creditworthiness. Options for both conventional and nonconventional fixed-rate loans also cater to different types of borrowers, improving access to home financing. The other statements presented do not align with the characteristics of fixed-rate loans; for instance, fixed-rate loans do not have adjustable rates, are not universally subject to prepayment penalties, and do not always require private mortgage insurance, especially if a sufficient down payment is made.