Lease to Own: A Path to Homeownership When You’re Almost There

Not quite qualifying for a home yet? There’s a program worth knowing about — it’s called DreamBuilder, and it’s designed specifically for buyers who are close, but not quite there.

Maybe your debt-to-income ratio is a little high because you co-signed on a loan. Maybe you’re self-employed and your income looks different on paper. Or maybe your credit score just needs a bit more time. DreamBuilder is a lease-to-own program that bridges the gap between where you are now and where you want to be — in a home of your own.

Here’s how it works: You lease the home while building equity through appreciation and on-time payments. When you’re ready — whether that means assuming the existing mortgage or qualifying for new financing — you can purchase it outright.

Basic program guidelines:

• 580 minimum credit score
• 3.5% minimum down payment
• 30-year fixed rate
• FHA standard loan limits (high balance considered case-by-case)
• Primary residence only
• 12 months of documented rental history with no late payments

The first step is getting pre-approved to see if this program is a fit for you.

If you or someone you know has been told “not yet” — this might be the answer. Reach out anytime, I’m always happy to help.

Take a look at the charts today, compliments of MBS Highway. The last red dash shows the hit mortgage-backed securities took today – closing down 33 basis points.

On the economic calendar this week, we have:

• Wednesday: ADP Employment, Fed’s Beige Book
• Thursday: Jobless Claims
• Friday: BLS Jobs Report, Retail Sales

Jobs data often impacts the direction of mortgage rates because it also is an indicator of the economy and wage inflation. Signs of inflation tend to cause mortgage rates to move higher.

Optimal Blue shows that mortgage rates averaged 5.901% for the 30 year conforming as of last Friday, February 27, 2026. Mortgage rates from last Friday (or even this morning) are expired.

It’s also important to note that the rates posted here are based on an average from the lenders who use Optimal Blue for locking in interest rates and therefore, we don’t know what the loan to value is, credit scores or how many point were used for pricing… plus, as I mentioned – this is expired! For current rates based on your personal scenario, please contact me – we don’t need to run your credit to provide you with scenarios.

No video this week… I hope to be back on track next Monday.

Have a great week and if you or anyone needs help with a mortgage for buying or refinancing a home, I’m happy to assist!

Mortgage rates are based on mortgage-backed securities (bonds) and change throughout the day. Of course, we hope mortgage rates continue to trend lower – there are no guarantees.

If you’ve been toying with refinancing or buying a home, I recommend that you reach out to your favorite local mortgage professional to schedule a discovery call to review your financial scenario – even if it’s months away. It’s always a good idea to learn as much as you can about what your options are – even if it’s to not take any action at this time.

You’ve probably heard the old rule of thumb: “You shouldn’t refinance unless interest rates drop at least 1%.”

But is that actually true in today’s market?

If you bought your home when rates were 6.75%—or anywhere in that 6–7% range—and you see them dipping into the low 6s or high 5s, you’re likely wondering if that move is enough to make a refinance worth the effort.

After more than 25 years in the mortgage industry, here’s my honest answer: Sometimes yes, sometimes no. It’s less about a “magic number” and more about your specific financial strategy.

Where Did the “1% Rule” Come From?

The 1% rule is a general guideline that became popular because a full percentage point drop usually creates enough monthly savings to offset closing costs quickly. It’s a safe starting point, but it’s certainly not a law.

When a Smaller Drop (0.50%–0.75%) Still Makes Sense

There are several scenarios where a modest rate improvement is actually a very smart move:

• You Have a Large Loan Balance: The math changes when your mortgage is larger. A 0.50% drop on a $700,000 loan is significantly more impactful than a 0.50% drop on a $250,000 loan.

• Removing Mortgage Insurance: This is a big one. If you purchased with an FHA loan or a low-down-payment conventional loan, and your home has gained value, we might be able to eliminate your monthly mortgage insurance. Sometimes the savings from removing that insurance outweigh the interest rate difference itself.

• You’re Staying Long-Term: If this is your “forever home,” your break-even point is more important than the rate. If you recover your costs in 18 months and plan to stay for 10 years, even a 0.75% improvement is a win.

• Restructuring Your Debt: Maybe the goal isn’t just a lower payment. Maybe you want to move from a 30-year to a 15-year term, or you want to access equity for home improvements or to consolidate higher-interest debt.

Focus on the “Break-Even,” Not Just the Rate

Instead of asking if the rate dropped enough, the better question is: “What is my break-even timeline?”

For example: if a refinance costs you $5,000 but saves you $200 a month, your break-even is 25 months. If you plan to be in the home for five more years, that’s three years of pure savings.

When we work together, I don’t just give you a quote. I provide a Total Cost Analysis that compares your current loan to new scenarios side-by-side. We’ll look at the amortization schedules to see exactly how much interest you’ll save over the next few years so you can make an educated decision.

The Bottom Line

Refinancing is a financial strategy, not a reaction to a headline. Especially here in Washington—where home values in King, Pierce, and Snohomish counties have shifted—local market conditions matter just as much as national news.

If you bought at 6.75% and see rates at 6.00% (or lower!), it is absolutely worth a conversation. We’ll run the numbers to see if it makes sense to move now or if patience is the better play.

Related Resources

• Refinance Options Overview
• Mortgage Programs for Refinancing
• Get a Personalized Rate Quote
• Sign-up for Rate Watch
• Apply for a Mortgage
• Mortgage Refinance Guide for 2026

After an amazing three-week road trip down to California, the Grand Canyon, and back home to Seattle, I’m officially back in the office and watching the markets closely. And what a week to return — we’re seeing something we haven’t consistently seen in a while…

30-year conforming mortgage rates are trending lower!

That’s getting attention.

Are Tariff Rulings Affecting Mortgage Rates?

One of the big questions I’ve been asked this week:

Is the recent U.S. Supreme Court ruling against former President Trump’s tariffs impacting mortgage rates?

Mortgage rates aren’t directly tied to political headlines — but financial markets absolutely react to uncertainty and shifts in economic policy.

Trade policy can influence:

• Inflation expectations
• Global market stability
• Investor behavior
• Bond market demand

Mortgage rates are heavily influenced by mortgage-backed securities and the bond market. When investors move toward bonds for safety, yields can improve — and that can help mortgage rates move lower.

We’ve seen bond market volatility recently, and that may be contributing to the improvement in rates.

Where Are Mortgage Rates Right Now?

According to Optimal Blue, 30-year conforming mortgage rates averaged just under 6% as of last week.

A few important reminders:

• These are averages based on lenders who use the Optimal Blue platform.
• We don’t know what pricing assumptions were included.
• These rates are already expired.
• Mortgage rates change constantly — sometimes multiple times per day.
• Your credit score, down payment, property type, loan size, and overall scenario matter.

If you’d like current pricing tailored to you, please reach out.

Economic Data We’re Watching This Week

The big report on our radar this week:

Producer Price Index (PPI)

PPI measures wholesale inflation — what producers are paying before goods reach consumers.

Why does that matter?

Inflation is still the primary driver of mortgage rates. If inflation shows signs of cooling, rates can improve. If inflation heats back up, rates may respond upward.

Markets are very sensitive to inflation data right now.

In the Spotlight: Alternative Documentation Loans for Self-Employed Borrowers

This week I’m also highlighting a program that’s especially important here in Washington State — alternative documentation loans for self-employed borrowers.

Many business owners, 1099 earners, and entrepreneurs write off significant expenses on their tax returns. While that’s smart tax planning, it can make qualifying for a traditional mortgage more challenging.

Mortgage options may include:

• Bank statement loans
• 1099s
• Profit & loss only programs
• Other non-QM documentation solutions

These programs allow income qualification based on cash flow rather than just taxable income.

If you’re self-employed and have assumed you “can’t qualify,” let’s talk. There are more options available than many people realize.

My Take

Rates under 6% are psychologically important. We’re seeing more conversations start again — especially from buyers who paused and homeowners who are evaluating whether refinancing could make sense.

The key is staying informed and having a strategy, not reacting emotionally to headlines.

If you’re thinking about:

• Buying your first home
• Moving up
• Refinancing
• Exploring options as a self-employed borrower

I’m here to help you review your scenario and create a plan.

Thank you so much for following Mortgage Porter Weekly and for allowing me to be your resource here in Seattle and across Washington State.