The Fed Rate Cut: What does it mean to you?

The Federal Reserve has cut interest rates by 50 basis points yesterday.
What does this mean to you and your family? Here is a quick guide of what to expect.

Mortgages:
Fixed-rate mortgages usually do not change in response to cuts in the federal funds rate. However, adjustable-rate mortgages may be more sensitive to Federal Reserve rate decisions. Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets. It's impossible to know when -- or even if -- fixed-rate mortgages will fall given the Fed's most recent trim to the federal funds rate.

Home Equity:
The Federal Reserve's decision to cut rates by a half-point eventually will mean lower borrowing costs for homeowners who have a home equity line of credit. The Federal Reserve's latest interest rate cut means you can expect HELOC rates to fall soon. It may take one or two billing cycles before you see the benefits.

Auto Loans:
The key to getting the best possible auto loan in today's market, as it has been for months now, is to bring a sterling credit score with a sizable down payment. The rate cut likely will not translate into a savings bonanza for car buyers. Rates are likely to vary depending on the lender as well as your credit score and down payment.

CDs & MMAs:
Certificate of deposit rates compete with other fixed-income options of like duration -- namely Treasuries. Longer-term CDs, just as with longer-term Treasuries, often move in advance of the Federal Open Market Committee, if economic conditions are such that a rate change is expected. It will take time for all of the measures the Treasury and the Federal Reserve have put in place to do some noticeable good.

Credit Cards:
Variable-rate cardholders eligible to receive a rate cut should receive it within three billing cycles.