FAQ’S

Why choose Plaza Loans for my Home Loan?

Plaza Loans has a wide range of loan programs that are competitively priced. Using the latest technology, we have made the borrowing process simple and convenient. As a direct lender, we can offer you a competitive rate and process your loan faster than our competitors. Our commitment is to provide top quality service.

How much help should I expect from a Plaza Loans Loan Consultant?

Our commitment is to provide top quality service. Our loan consultants have a full range of loan programs to offer and the very latest technology to expedite the loan process. They will listen to your needs and make sure they understand you completely, then discuss your options and make sure you thoroughly understand them. From application through funding, we make the loan process simple and convenient .

How do I know which mortgage loan is right for me?

This is what our personal service is all about . . . helping you make the best loan choice for your specific needs. Our loan consultants are experienced professionals with knowledge covering a wide range of home loan programs. Each consultant is able to explain the advantages of appropriate loan programs considering the specific financial goals of the customer.

What if my credit is less than perfect?

Plaza Loans offers programs for consumers whose credit has been impaired in the past. If you have a history of bankruptcy, late payments or other credit problems, we are here to help you determine possible financing options.

What is equity?

Equity is the difference between the amount for which a home can be sold and the amount still owed on the mortgage. This important difference represents the homeowner’s financial interest in the property. A homeowner can borrow against the equity in his/her home with a home loan and use the funds for virtually any purpose . . . from debt consolidation to major purchases to home improvements. Because the loan is mortgage-based, interest on the home loan may also be tax deductible. Consult your tax advisor to see whether this advantage applies to you.

What is the difference between a fixed rate and adjustable rate mortgage?

A fixed rate mortgage provides a rate of interest and set payment that remains the same for the life of the loan. An adjustable (or variable) rate mortgage (ARM) has an interest rate that adjusts periodically on the basis of changes in a specified financial index. Typically, adjustable rate mortgages start out at somewhat lower rates than fixed rate mortgages. They can fluctuate up, raising the monthly payment, or down, lowering the monthly payment, depending on the activity of the index to which they are tied. Our loan consultants can discuss the advantages of both types of mortgages to help you decide which product is best for you.

Does it make sense to refinance if I recently obtained a mortgage loan?

It might be a good time to refinance even if you recently obtained a mortgage. Given today’s favorable interest rates, a rate lower than the one on your current mortgage may be available and may result in savings every month. By consolidating your existing first and second mortgages . . . as well as outstanding credit card balances and other debt into a single mortgage loan payment, you might be able to save a considerable amount. You can also benefit from the convenience of one single monthly payment. Our loan consultants can help you determine if this option works to your advantage.

How much can I afford in mortgage payments?

How much you can afford depends entirely on your specific personal financial situation. Our loan consultants can help you find out exactly what that amount may be. For a quick estimate, use the Loan Calculator conveniently located on our website.

What is an APR?

“APR” stands for annual percentage rate. The APR estimates what you’ll pay over the course of an entire year. The APR takes into consideration other fees and costs including:

Discount points. Commonly referred to simply as “points,” these are increments of 1 percent of the mortgage that you pay off at the closing. If points are not required, and you elect to pay off points to lower your interest rate, it will not be included in the APR. However, if you’re required to pay off points, this cost will be factored in when your APR is calculated.
Origination fees. Often confused with points, this is a fee the lender charges for work they perform on the borrower’s behalf.
Mortgage insurance premiums. This is insurance against defaulting on payment of the loan. Your lender may require you to pay mortgage insurance if your down payment is less than 20 percent of the selling price of the home.
Prepaid mortgage interest. Since interest is generally paid on a monthly basis, prepaid mortgage interest is paid at closing to cover the gap between the time you close and the first of the next month.
What is the minimum down payment required for a home loan?

Our lenders offer home loans with down payments as low as 2.25%. That would be $2,250 down for every $100,000 of purchase price.

How do I get started?

It couldn’t be easier. Just give us contact us today.

CONTACT US
1155 Meridian Avenue
Suite 100
San Jose, CA 95125
800.816.5626
info@plazaloans.com
NMLS Branch ID 216565

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Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act NMLS#216565
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