Which of the following statements is TRUE regarding fixed rate loans?

Prepayment penalties increase the borrower's cost and discount points decrease it.

Lenders issuing fixed rate mortgages generally benefit if actual inflation is lower than expected inflation.

The effective interest rate on a mortgage will always be higher than the state rate of the loan.

Assuming two loans with the same interest rate and term, a borrower with a partially amortizing loan will pay less interest than a fully amortising loan if the loans are held to maturity.

None of the above statements are TRUE.