Which of the following is NOT typically a characteristic of prime loans?

Prime loans are characterized by a lower risk of default, which is often reflected in their terms and the profiles of borrowers who qualify for them. One significant aspect of prime loans is that they typically come with lower interest rates compared to subprime or high-risk loans. This is because lenders view borrowers with strong financial profiles, such as stable income histories, good credit scores, and low debt ratios, as less likely to default on their loans.

High interest rates are generally associated with subprime loans, which target borrowers with poorer credit histories or financial instability. In contrast, prime loans reward borrowers with better credit and stable financial backgrounds by offering them more favorable lending terms, including lower interest rates. Therefore, a characteristic of prime loans is the avoidance of high interest rates, making it the correct choice as something that is not typical of prime loans. This understanding is key for those studying mortgage lending practices in Florida and elsewhere.