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Housing Market Sizzles

As the Summer drags on, some housing markets in California and the US continue to sizzle. Flattery is a tried-and-true negotiating strategy, but some homebuyers in hot markets are coming up with unusual ways to win over sellers.

In markets where homes are selling at record rates, it’s common for buyers to include a personal note along with their offer paperwork. Usually that means a letter to introduce the seller to the buyer’s family and go on about what the buyer loves about the house etc. Some buyers are stepping up their games: Recent offers have included YouTube videos, baked goods, and leaving notes for the seller on the kitchen counter after the tour. Some buyers have come back the next day and hand-delivered cookies to the seller and to their neighbors!

Cookies might be new, but the offer letter is an old staple of hot markets. There’s plenty of anecdotal evidence to indicate that the strategy works, though only in certain regions. Do personal letters really help buyers get ahead? Some sellers are interested only in verifying financing, not hearing about a child’s favorite color or how a married couple met. That said, data for the first six months of 2015 indicates, letter writers were 14% more likely to have an offer accepted than buyers who didn’t send a note.

As they say, you don’t wait to buy real estate, you buy and wait. To compete in this market, we strongly recommend buyers first get preapproved for a mortgage. We can provide a Pre-Approval letter quickly and at no cost to you. We also encourage buyers to include a cover letter with their offers…talk to your Realtor. Looking for a good Realtor? We work with many Realtors and can refer you to an experienced Realtor in your neighborhood. For those of you who may have missed the opportunity to refinance last year, this is still a good a time get your paperwork in order and lock in these rates as most experts don’t expect rates to stay low for long.

Interest Rates:
Mortgage rates continue to trend higher after the Federal Reserve signaled that at least one interest rate hike is on its way later this year. The uptick in rates comes as the housing market’s momentum strengthens, but it doesn’t seem to be affecting people’s appetite to borrow. Refinance and purchase transactions are up as demand for jumbo refinancing and purchases continue to grow. Most refinancing is largely for debt consolidation.

What people are saying…testimonials

Current Conforming Rates (Pmyts based on a average loan amount of $250,000)

Loan Program Monthly Pmyt Rate APR Points
30YF $1,175 3.875% 4.00% 0
20YF $1,482 3.75% 3.99% 0
10YF $2,385 2.875% 3.00% 0
15YF $1,741 3.125% 3.25% 0
5/1 ARM $1,070 3.125% 3.375% 0
7/1 ARM $1,088 3.25% 3.375% 0
FHA 30YF $1,140 3.625% 3.75% 0
FHA 15YF $1,802 3.25% 3.375% 0

Current High Balance Rates – Max Loan Amount $625,500 (Pmyts based on loan amounts of $625,500)

30YF $2,986 4.00% 4.125% 0
15YF $4,433 3.375% 3.50% 0
5/1 ARM $2,722 3.25% 3.375% 0
7/1 ARM $2,808 3.50% 3.75% 0
FHA 30YF $2,896 3.75% 3.99%  

Disclosure: These are our current conforming and High Balance rates based on primary residences only, your actual rate could be higher depending on “Risk Factors” such as credit score, LTV, Cash-out, Investment prop, 2nd home, zero cost etc. Please call us for an accurate custom quote including jumbo loans up to $20 million.

The cornerstone of Trulending Mortgage is a fierce commitment to integrity, service and expertise and these core values have, thankfully, resulted in client relationships for life. We appreciate the opportunity to work with you on your next refinance or home purchase transaction. Visit our testimonial section to see what our customers are saying. Please pass this along if you think we can help any of your close friends or family.

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