[Gustan Cho]

Here is another question on the UTAH PLM EXAM that keeps on popping up: Where would a “due on sale clause” be found on the mortgage loan documents and what does it mean to the consumer?

Here is the answer:

[Gustan Cho]

I have taken the UTAH PLM EXAM five times and am scheduled to take it the sixth time this Monday, July 31st, 2023. I have not studied for the exam but will study for it tomorrow and Sunday. Two days. Here is one of the questions they ask often, and I did not know, so I just guessed every time. I asked Angie Torres, our National Operations Director, about this question, and she gave me this answer.

4/2/8

The first number (4) – Initial Adjustment Cap

The second number (2)- Subsequent Adjustment Cap

The third number (8)- Max Lifetime adjustment cap

Here’s what this means:

Initial adjustment cap: The first number represents the maximum percentage points that your interest rate can increase by in the first year after your initial fixed period ends. For a 3/1 ARM with a 2/2/5 cap structure, your rate can’t adjust to more than two percentage points higher than your initial rate in the fourth year of your loan.

Subsequent adjustment cap: Your rate will adjust for the remainder of your loan every year thereafter. The second number represents the cap for these adjustments. With a 2/2/5 cap structure, your rate can only adjust a maximum of two percentage points.

Lifetime rate cap: This limits how high the rate can rise over the life of the loan. In the case of a 2/2/5 cap structure, the third number shows that your interest rate cannot increase more than five percentage points over the life of the loan.

[Gustan Cho]

Dustin, I have never seen such huge depreciation like RVs. I was thinking of either renovating my current RVA like adding more slides or trading it in. Can you ask your friend about adding two or three more slides to my current RV with one slide?

[Gustan Cho]

Dustin, I can’t believe these rates. Might as well go non-QM loan.

[Gustan Cho]

Ronda, I lived in Marina del Rey from 1988 until 1993. Rent was $4,000 per month. Everything is so expensive. Beautiful weather, great atmosphere, diverse ethnic groups, great authentic food, crazy ass expensive, and millions of crazy people.

[Gustan Cho]

Thank you Ronda. Makes all the sense in the world. Glad to have our top senior journalist participating on the forum

[Gustan Cho]

Nevada still remains to be a hot market. Home prices keep on going up. Many transplants from other states.

[Gustan Cho]

You can buy a lot of houses for the money in Arkansas. Home pics in Arkansas is about a third of the price of a home in California.

[Gustan Cho]

Many beautiful spots in Minnesota, and it has reasonable home prices and lower cost of living. Of course, your got the bad spots like the ghettos and democrat-infested areas.