1 Year LIBOR based ARM resetting near 3.25%

If you have a 1 year LIBOR based ARM (Adjustable Rate Mortgage) loan and it is resetting soon, your new rate may be approximately 3.25%.  The current 1 year LIBOR index is below 1.00%.  Many ARM margins are at 2.25%. (1% + 2.25% = 3.25%). This low LIBOR rate will move higher once the global economy recovers. If you are not comfortable with the interest rate risk associated with an ARM, consider refinancing into a longer term fixed rate loan