Compare today's 3-year ARM rates
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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
NerdWallet’s mortgage rate insight
On Monday, November 28th, 2022, the average APR on a 30-year fixed-rate mortgage fell 5 basis points to 6.476%. The average APR on a 15-year fixed-rate mortgage fell 8 basis points to 5.851% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 3 basis points to 6.459%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 6 basis points lower than one week ago and 341 basis points higher 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
|30-year fixed-rate FHA||5.534%||6.316%|
|30-year fixed-rate VA||5.810%||6.211%|
3-year ARM Mortgage Rates
NerdWallet’s mortgage comparison tool can help you compare 3-year ARMs and choose the one that works best for you. Just enter some information and you’ll get customized rate quotes chosen from hundreds of participating lenders. No need to give out any personal information or go through a credit check.
What is a 3-year ARM?
A 3-year adjustable rate mortgage, also known as a 3/6 ARM or 3y/6m ARM, is an adjustable-rate mortgage (ARM) with an interest rate that is initially fixed for three years then adjusts every six months. The “3” refers to the number of initial years with a fixed rate, and the “6” refers to how often in months the rate adjusts after the initial period.
The initial fixed interest rate is typically at a low introductory level. After the initial fixed period, the new, adjustable rate, which changes twice a year, is tied to an interest rate index that moves based on a variety of economic and financial market factors. After the introductory period, your interest rate will reset to the indexed rate and then go up if the index rises, and drop if it falls. If you don’t refinance, you’d pay off the loan in 30 years.
When should you consider a 3-year ARM?
A 3-year ARM makes sense if you plan to refinance your mortgage or sell your house before the introductory rate expires or if you expect the value of your house to rise quickly. If you choose an ARM, you’ll likely be able to qualify for a larger loan because of the low introductory rate. But be careful, your interest rate and monthly payment will increase after the three-year introductory period, and can climb substantially depending on the terms of your specific loan.
Rate cap: The maximum amount your loan’s interest rate can increase for each designated period of time.
2/1/5: Tells you the limits on just how high your interest rate can go. In this example, the initial rate increase can be no more than 2 percentage points. Each subsequent adjustment can be no higher than 1 percentage point — and the last digit represents the lifetime maximum rate increase your loan will allow. In this case, a 5 percentage point maximum.
Index margin: Your loan’s rate is based on an interest rate index plus some fixed percentage. For example, an index rate of 2.25% plus a margin of 1.50 percentage points would mean your interest rate would be 3.75%.
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.
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