If you are most comfortable with an interest rate that stays the same for the life of your loan and payments (principal and interest) that stay the same each month, then a fixed rate mortgage may be your best choice. Especially if you plan on staying in your home for a while or expect interest rates to rise. You choose from flexible terms to fit your plans and expectations. Keep in mind that the longer the term, the lower the monthly payment.

With a fixed rate mortgage, you know exactly what your principal and interest payment will be every month. It won't change because your interest rate won't change. Please be aware that the portion of you monthly payment for property taxes or hazard insurance CAN change, as those costs go up or down. This could cause your total monthly payment to vary from time to time. If interest rates go up, you're protected with a fixed rate mortgage. But you won't benefit if rates go down. The only way to take advantage of falling rates would be to refinance your mortgage. Call Assurance Partners Bank for more details.

Consider a Fixed Rate Mortgage If You:

• Want the certainty of a fixed principal and interest payment.
• Believe interest rates may go up
• Are on a fixed or tight budget

When Flexibility is Important

If your life is full of changes and you anticipate more, like a rising income, or another move, then an adjustable rate mortgage (ARM) could work to your advantage. Especially if interest rates stay the same or go down. With an ARM, your interest rate is usually lower than a fixed rate loan, so you can "buy more home." Even if interest rates go up you're protected because our ARM limits the amount the rate may increase at specified times and over the life of the loan. With a variety of options available, you can choose how often your rate will be adjusted. Some of our ARMs even offer an option which allows you to convert your loan to a fixed rate mortgage at certain periods during the term. When interest rates decline, this flexibility allows you to lock in a lower rate.

Compared to fixed rate mortgages, Arms usually offer a lower interest rate to start, so monthly payments are lower. The interest rate is based on an "index" determined by your loan agreement. The lender then adds a set "margin" to that index. Your payments could go up or down as the index is adjusted, depending on the economy. The index used, the margin added to that, and the amount of your first-time rate adjustment (usually 1, 3, 5 or 7 years) can be different for each product. Be sure to ask what they are

Consider an Adjustable Rate Mortgage If You:

• The home you want exceeds what you qualify for at a fixed rate.
• Are confident your income will increase
• Believe interest rates will probably stay the same or go down.
• Plan on moving within five to seven years of buying your home

  Stuber Insurance Agency
  is your local affiliated agent
  for Assurance Partners Bank.

  Assurance Partners Bank Member FDIC