Mobile terminals having three dimensional audio capabilities for making sound appear to originate from any location within a three dimensional space and to facilitate navigational movement among displayed information are provided. A mobile terminal includes a housing that encloses a processor and one or more speakers. A display is located on the housing that is in communication with the processor, and a keypad is located on the housing that is in communication with the processor and that is responsive to user input for navigating a cursor within the display. The mobile terminal includes a three dimensional audio system that is in communication with the processor and speaker(s). The three dimensional audio system audibly indicates navigational movement of the cursor in the display, and is configured to make sound emitted by the speaker(s) appear to originate from any of a plurality of locations in a virtual three dimensional space.