Missed by one question the Utah PLM exam. Going to set up a appointment for next available time at Pearson Vue.

Here is another question I do not understand

Edna is purchasing a four-unit investment property and is getting an ARM; the terms of the loan will be 3/6mo ARM with 1/1/5 CAP with a start interest rate of 4.25% and a margin of 2.25%. At the first adjustment, the index is 2.50%, at the second adjustment the index is 3.25%, and at the third, the index is 4.125%. What will the interest rate be at 18 months after the initial interest rate adjustment?

How does adjustable rate mortgages work? What are the three numbers X/X/X on ARMs? Can someone help me with this question about adjustable rate mortgages?

Matt has obtained a 30-year 3/1 ARM mortgage loan for $150,000 on a beautiful four-bedroom two bath home in the suburbs. The start rate was 3%. The rate caps are 4/2/8. The margin is 3%. The index was 4% at the start of the loan, 4.25% at the end of year three, and 6.5% at the end of year four. Which of the following rates would reflect the interest rate that will begin in year number five?