| North Palm Beach, Fla. -- Nov. 26, 2009 (Bankrate.com) -- Average rates on 3/1 ARMs in the United States remained unchanged at 4.75 on Thursday, according to Bankrate.com's daily Your Best Interest report. A basis point is one-hundredth of a percent. The mortgages in the survey had an average of 0.65 discount and origination points.
A 3/1 ARM is an adjustable-rate mortgage, or ARM, that has an initial interest rate for the first three years, and thereafter adjusts each year. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. The rate can only change within limits -- by a specified amount each year, and a specified amount over the life of the loan. Someone taking out a $165,000.00 3/1 ARM at the current average would pay $653.13 a month in interest for the first three years of the loan. After that point, the loan would convert to an adjustable-rate mortgage, with amortized principal and interest payments. The highest rate nationally on a 3/1 ARM was found at that charged 10.000 percent. The lowest rate was found at that charged 2.990 percent. Six months ago, the average rate in the U.S. was 4.71 percent. To see all of the results of Bankrate.com's surveys, go to www.bankrate.com. The Your Best Interest report is a daily service of Bankrate.com, a financial news and information service based in North Palm Beach, Fla. Bankrate surveys more than 300 financial products from more than 4,800 institutions in all 50 states. | 
