Compare Today’s 3/1 ARM Mortgage Rates

Compare Today's 3-Year ARM Rates

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners and here's how we make money.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.

Trends and Insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

6.608%

30-year fixed-rate

“

On Wednesday, December 11, 2024, the average APR on a 30-year fixed-rate mortgage rose 2 basis points to 6.608%. The average APR on a 15-year fixed-rate mortgage remained at 5.760% and the average APR for a 5-year adjustable-rate mortgage (ARM) rose 21 basis points to 7.458%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 1 basis point lower than one week ago and 34 basis points lower than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

Accurate as of 12/11/2024

Product	Interest Rate	APR
30-year fixed-rate	6.534%	6.608%
20-year fixed-rate	6.346%	6.438%
15-year fixed-rate	5.644%	5.760%
10-year fixed-rate	5.453%	5.611%
7-year ARM	6.998%	7.380%
5-year ARM	7.096%	7.458%
3-year ARM	8.125%	8.355%
30-year fixed-rate FHA	5.500%	6.284%
30-year fixed-rate VA	5.684%	6.057%

Data source: ©Zillow, Inc. 2006 - 2021. Use is subject to the Terms of Use

A Beginner’s Guide to 3-Year ARMs

Last updated on April 24, 2024

Written by

Holden Lewis

Senior Writer/Spokesperson

Reviewed by

Michelle Blackford

Edited by

Mary Makarushka

Assigning Editor

Fact Checked

Written by

Holden Lewis

Senior Writer/Spokesperson

Reviewed by

Michelle Blackford

Edited by

Mary Makarushka

Assigning Editor

Fact Checked

What is a 3-year ARM?

A 3-year ARM is an adjustable-rate mortgage with an interest rate that stays the same for the first three years. After three years are up, the interest rate can change periodically with the broader market.

A 3-year ARM typically begins with a lower introductory rate than a fixed-rate loan. After the three years are over, the rate can adjust up or down every six months. The rate adjustments are based on a benchmark index, which in most cases is the secured overnight financing rate, or SOFR. The benchmark rate tends to rise when the economy is strong and fall when the economy weakens.

Different lenders may refer to the 3-year ARM by different names. It's sometimes called the 3/6 ARM, where the "3" refers to the starting fixed-rate period in years, and the "6" refers to how often in months the rate is adjusted afterward. It's sometimes called the 3y/6m or 3yr/6mo ARM. It used to be called the 3/1 ARM because it was adjusted annually before regulatory changes were made.

3-year ARM rates

NerdWallet’s mortgage comparison tool can help you find competitive 3-year ARM rates today, whether you are buying a home or refinancing. In the filters above, enter details about the loan you’re looking for, and you can see rate quotes without providing personal information.

When to consider a 3-year ARM

A 3-year ARM makes sense if you expect to refinance your mortgage or sell your house before the introductory rate expires. You may be able to qualify for a larger loan because of the ARM's low introductory rate. Keep in mind that the interest rate and monthly payment could climb substantially if the index rate rises anytime after the first three years are up.

It might be harder to find a lender that offers a 3-year ARM than to find lenders that offer 5-year ARMs.

ARM glossary

Index: The benchmark rate that, when added to the margin, yields each six-month period's interest rate. Most ARMs use the 30-day average secured overnight financing rate, or SOFR, which reflects market conditions.
Margin: A number of percentage points that the lender adds to the index to arrive at the interest rate that you'll pay during a six-month period. For example, an index rate of 5% plus a margin of 2.75 percentage points would mean your interest rate would be 7.75%.
Rate cap: The maximum amount your loan’s interest rate can go up or down the first time it adjusts and each time thereafter.

Learn more about adjustable-rate mortgages:

About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.

Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.

Bank of America. Loan Assumptions and Disclosures. Accessed Apr 21, 2024.

Freddie Mac. SOFR-Indexed ARMs. Accessed Apr 21, 2024.

Consumer Financial Protection Bureau. What is the difference between a fixed-rate and adjustable-rate mortgage (ARM) loan?. Accessed Apr 21, 2024.