NMLS General Mortgage Knowledge Practice Questions
Content area 3 of 5 on the SAFE MLO Test · 20% of the test, about 23 of the 115 scored questions
120 questions across all five content areas in 190 minutes, with a score for General Mortgage Knowledge so you know where you stand.
Free General Mortgage Knowledge drillAn ARM's rate adjusts to the sum of a published index and a fixed number of percentage points set in the note. What is that sum called?
General Mortgage Knowledge on the NMLS test
General Mortgage Knowledge is 20% of the SAFE MLO Test, about 23 of the 115 scored questions. It tests whether you know the products you will sell and the vocabulary of the industry: which loans are qualified mortgages, how conventional and government loans differ, how each loan product works, and what terms like subordination, table funding and a 2-1 buydown mean.
- Share of the exam
- 20% in the official content outline, about 23 of the 115 scored questions
- Our drill
- 10 questions from 99 General Mortgage Knowledge questions, untimed, an explanation after every answer; one free attempt, unlimited with a pass
What General Mortgage Knowledge questions test
- Qualified and non-qualified mortgages: the ability-to-repay rule and the features a qualified mortgage cannot have (negative amortization, interest-only payments, balloon payments outside the small-creditor exceptions, terms over 30 years)
- Conventional loans (conforming loans sold to Fannie Mae and Freddie Mac, and nonconforming jumbo and Alt-A loans), subprime loans and the federal guidance on nontraditional mortgage products
- Government loans: FHA mortgage insurance, VA guaranties and funding fees, and USDA rural housing loans
- Loan products: fixed-rate, adjustable-rate (index, margin, caps), purchase-money second mortgages, balloon, reverse (HECM), home equity lines of credit, construction and interest-only loans
- Terms: liens and subordination, escrow accounts, rate locks, tolerances, table funding, lender credits, discount points, buydowns, loan-to-value, accrued and daily simple interest, the primary and secondary markets, assumable loans and APR
Sit the full exam under the real clock
120 questions across all five content areas in 190 minutes, with a score for General Mortgage Knowledge so you know where you stand.
Free General Mortgage Knowledge drillHow to study it
- Compare products side by side: for each, know who it suits, how the payment changes over time, and its main risk.
- Learn government programs by their insurance or guaranty: FHA charges mortgage insurance premiums, VA guarantees part of the loan and charges a funding fee, USDA guarantees rural loans.
- Practice ARM questions with an index, a margin and caps until you can compute the new rate quickly.
- Use the drill explanations to build a glossary of every term you missed.
Common questions
Do I need to know FHA and conforming loan limits for the NMLS test?
You need to know that the limits exist and who sets them (FHFA for conforming loans, HUD for FHA), and what makes a loan jumbo or nonconforming. The dollar limits change every year, so learn the concepts rather than this year’s numbers.
How many general mortgage knowledge questions are on the NMLS test?
General Mortgage Knowledge is 20% of the test, about 23 of the 115 scored questions.
120 questions across all five content areas in 190 minutes, with a score for General Mortgage Knowledge so you know where you stand.
Free General Mortgage Knowledge drillThe other NMLS content areas
Sources
- NMLS MLO Testing Handbook: test specifications (120 items, 115 scored, 190 minutes, $110)
- NMLS: SAFE MLO National Test with Uniform State Test Content Outline
- NMLS MLO Testing Handbook: test results and the 75% passing score
- NMLS MLO Testing Handbook: retaking a failed test (30 / 30 / 180 days)
- NMLS: Test Performance Information (53% first-time pass rate)
- CFPB: TILA-RESPA Integrated Disclosure (TRID) rule
- eCFR: Regulation Z, 12 CFR 1026.19 (Loan Estimate and Closing Disclosure timing)
Original practice questions for exam preparation, written to the SAFE MLO National Test with Uniform State Test Content Outline. Independent practice, not affiliated with or endorsed by NMLS, the Conference of State Bank Supervisors (CSBS) or the State Regulatory Registry.