Generally, Residential Loans Are Open to Prepayment at Any Time

Generally, residential loans are open to prepayment at any time without penalty. To protect against a deficiency, mortgage loans should not exceed the market value of the mortgaged property and in fact are usually made for:

A) No more than 80 percent of the value
B) Not less than 80 percent of the value
C) No more than 90 percent of the value
D) Not less than 70 percent of the value