CFPB states that anything other than a 30 year fixed rate mortgage in NON-TRADITIONAL. Therefore an ADJUSTABLE RATE IN NON-TRADITIONAL Please identify the components of an Adjustable Rate Mortgage and how do you calculate the Fully Indexed Rate on an ARM. components: Index Margin Add them together to get the fully indexed rate on an Adjustable Rate Margin have them complete a couple of samples: Index is 3.00 Margin is 2.00 What is the fully indexed rate: Answer is 5.0 Index is 2.75 Margin is .50 Fully indexed rate is: 3.25 Index + Margi= fully indexed rate.