SOFE AFE Exam - Topic 4 Question 112 Discussion

Actual exam question for SOFE's AFE exam

Question #: 112
Topic #: 4

[All AFE Questions]

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:

ANo more than 80 percent of the value

BNot less than 80 percent of the value

CNo more than 90 percent of the value

DNot less than 70 percent of the value

Show Suggested Answer

Suggested Answer: A

by Nenita at Apr 13, 2026, 01:51 AM

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Deandrea

2 days ago

This question feels familiar! I practiced one like it where the answer was also related to loan-to-value ratios. I think it’s A) No more than 80 percent.

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Oretha

7 days ago

I think I remember something about the 80 percent rule being common for loans, but I'm not entirely sure if it's a maximum or minimum.

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