TRUE or FALSE?

1. A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

2. The rate cap on an ARM sets a dollar limit on how much your monthly payment can increase during any adjustment period.

3. The rate cap on an ARM protects the borrower.

4. For most cars, the manufacturer's warranty extends through the first seven years of ownership or the first 70,000 miles, whichever comes first.