"Maximum possible rate is 10.250%." That sentence sits deep in the disclosure on Trumark Homes' Northern California incentive page. The headline at the top of the same page offers qualified buyers a 5.250% note rate, 5.993% APR, at select communities, including Apricot Estates in Brentwood.
Both numbers describe the same loan. The gap between them shows what Brentwood's new-construction market is doing this fall. The headline incentive lowers the monthly payment, while the posted price reductions are modest. For buyers comparing a new home on Strathaven Place with a resale across town, the purchase price is the number that lasts beyond the seven-year fixed period.
What the 5.25% is attached to
The full disclosure on Trumark's incentive page describes a 7/6 adjustable-rate mortgage. The rate stays fixed for seven years. After that it adjusts every six months, based on the 30-Day Average SOFR index plus a 2.75% margin. The caps are 1% on the first adjustment, 1% on each one after that, and 5% over the life of the loan.
Trumark's own example uses a $1,385,331 purchase price, a $1,108,264 loan with 20% down, a 780 minimum FICO score, and a 30-year term. Here is how the payment moves under its terms:
| Stage of the loan | Rate | Monthly principal and interest |
|---|---|---|
| Years one through seven | 5.25% | $6,119.88 |
| First adjustment, using SOFR of 3.70% as of 9/25/26 | 6.25% | $6,823.78 |
| Lifetime ceiling | 10.25% | $9,931.18 |
Taxes, insurance and any HOA dues are not included in those figures.
SOFR of 3.70% plus the 2.75% margin comes to 6.45%. The 1% initial cap holds the first reset to 6.25%. If the index stayed where it was in late September, the next six-month adjustment would have room to climb to 6.45%. Each cap limits how far a single adjustment can move the rate, so the loan reaches the index-plus-margin rate in steps of up to one point.
The quoted rate also assumes 1.142% in discount points paid at closing for a 60-day lock. On the example loan, that comes to roughly $12,656.
The rest of the market has been moving the other way. Freddie Mac's survey had the 30-year fixed average at 7.03% on September 24, 2026, then 7.28% on October 1 and 7.40% on October 8. Freddie Mac says its weekly survey doesn't report ARM rates, fees or points. So the 2.15-point gap between 5.25% and 7.40% compares two different loan products, not two prices for the same loan.
Why the price tag barely moved
Apricot Estates is a 57-home Trumark community next to the city's Sand Creek Sports Complex. It launched sales in July 2025 with initial prices in the low $1 millions. The current incentive page does show price reductions:
- Lot 37 at 1589 Strathaven Place, a 3,803-square-foot Residence 2, dropped from $1,301,685 to $1,251,685. That's $50,000, or about 3.8%.
- Lot 44 at 1596 Strathaven Place, a 4,397-square-foot Residence 3, dropped from $1,523,124 to $1,449,144. That's about 4.9%.
Both cuts are smaller than the national average. In the NAHB/Wells Fargo Housing Market Index for September 2026, 38% of builders cut prices, and the average cut held at 6% for the sixth month in a row. Sixty-six percent of builders used sales incentives, the highest share since December. In the West, the three-month average HMI was 28, well below the 50 line that separates good conditions from poor.
Industry sources explain the general preference for incentives over cuts in terms of appraisals. A June 2026 explainer from Movement Mortgage says incentives keep the advertised base price intact and avoid creating lower comparable sales, which can affect appraisals on the homes a builder still has to sell in that community. MarketWatch reported the same reasoning in 2023. A lender executive told the outlet that price cuts can affect the value of homes already sold and the builder's ability to price future ones.
In a 57-home subdivision, every closed sale becomes a data point for the next appraisal. A rate incentive shows up in the payment and never appears in the recorded sale price. A $150,000 price cut would show up in the public record, and the next appraiser would see it. Trumark hasn't said publicly why it structured this promotion the way it did, but that general mechanism matches what Brentwood buyers can see on the page this fall, which is modest price cuts paired with a big rate number.
The lender is part of the package
Trumark's disclosure says the rate promotion is available only through Icon Lending, its affiliate, and not through other lenders. Buyers aren't required to use Icon to buy a Trumark home, and the base price is the same whichever lender a buyer picks. The incentive also can't be combined with other seller incentives.
A buyer who gets a better fixed-rate quote from their own lender keeps the same base price but gives up the 5.25%. The incentive belongs to Icon's loan, not to the house. The rate must also be locked within 10 days of application. FHA and VA loans aren't eligible, and the offer is first-come, first-served while program funds last.
The lower rate doesn't change the carrying costs
A lower note rate does nothing to the property tax bill, and the tax bill depends on the purchase price. Apricot Estates has no HOA. Trumark's FAQ gives its 2024/2025 ad valorem tax rate as 1.1084%, plus an estimated $2,918.08 a year in special assessments, and tells buyers to verify both figures. The FAQ is dated April 2025 and doesn't break the assessment total into parts.
Brentwood's Mello-Roos districts give a sense of scale. The City of Brentwood's FY 2024/25 CFD annual report lists single-family levies of $271 a year in CFD No. 2, $909 in No. 3, $955 combined in No. 4 and $909 in No. 5. Each rate applies only to taxable parcels inside that district, and the parcel-level tax roll is available from the City Clerk. Those figures are more than a year old, and they don't confirm which district covers any particular new subdivision.
Brentwood's other active new community runs at a different price point. Meritage Homes' Casacala is 82 detached homes along Marsh Creek, listed from $750,000, with floor plans from 2,168 to 2,765 square feet. One home listed there, 324 Clodius Way, shows HOA dues of $84 a month. For any subdivision, the California Department of Real Estate public report is the document that discloses HOA costs and assessments. It must be given to a prospective buyer before purchase, or on request.
Resale sellers have different reasons to hold price
An individual resale seller has no remaining inventory whose appraisals depend on their sale price. That changes what's negotiable. A new-home builder can put its discount into the loan and leave the recorded price alone. A resale seller can only move on price and terms for that one house.
The county numbers suggest resale sellers haven't needed to move much. In August 2026, C.A.R. put Contra Costa County's median existing single-family price at $875,000, up 2.9% from a year earlier. Median time on market was 20 days, with 2.7 months of unsold inventory. The Contra Costa Association of Realtors' August 2026 recap reported a $790,000 median, 21 median days on market and a 100.64% sold-to-list ratio. The two medians come from different series and don't line up exactly. They do agree on direction. Countywide resale homes were selling close to list price in August, while 66% of builders nationally were adding incentives by September.
Neither association published Brentwood-only figures for August or September that were available by mid-October, so those county numbers are the latest dependable read.
The calendar on this offer
The promotion runs on a short clock, measured from today, October 12, 2026:
- Rates, terms and program availability are listed as effective 9/25/26 and subject to change without notice.
- The rate must be locked within 10 days of application. The example assumes a 60-day lock.
- A new purchase agreement must be signed by October 30, 2026, 18 days from now.
- The home must close by November 30, 2026.
The seven-year fixed period starts at closing. A loan closed in November 2026 would reach its first adjustment in late 2033.
FAQ
Is the 5.25% rate directly comparable to Freddie Mac's 7.40% average? No. Freddie Mac's October 8, 2026 figure is a 30-year fixed average that leaves out ARM rates and points. Trumark's rate is for a 7/6 ARM and assumes 1.142% in discount points.
Does the home cost more if I use my own lender? Trumark's disclosure says the base price is the same regardless of lender. The 5.25% promotion is available only through Icon Lending.
What happens in year eight? The rate adjusts every six months to SOFR plus 2.75%. It can rise no more than 1% per adjustment and can never go above 10.25%.
Where can I see the special taxes on a specific Brentwood lot? The subdivision's DRE public report covers assessments. For Mello-Roos levies, the City of Brentwood's CFD reports explain each district, and the City Clerk can provide the parcel-level tax roll.
Comparing a builder incentive with a resale home means looking at the purchase price, the seven-year payment schedule, the tax bill and the appraisal history on that street together. If you're deciding before the October 30 deadline, Bogosian & Co. can walk through the disclosure with you, pull the comparable sales and help you see which number you'll be living with in 2033. Schedule a Free Consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
