Fed Drops Rates by .50% today.

Previously if you had a Home Equity Line of Credit the average rate was at Prime or 8.25%.  Now with the Fed cutting the Fed Funds Rate your new rate will be 7.75%.  This will help peole to free up some money monthly to pay for other expenses.  What this means to your budget is if you have a HELOC of $100,000.00 your Minimum monthly payment was $687.50.  Now with rates down to 7.75%  your monthly payment will be $645.83 -- a savings of $41.67 monthly.  This definitely will help with the up-coming gas bills. 

At this time it has no effect on the conventional rates for 30 year fixed.  We will have to watch for the Bond market reaction in the next couple of days.