IrvineMarket

The Fed, aiming to free up lending and jolt the economy back to life, cut the federal funds rate to a target range of zero to 0.25 percent and pledged to keep funneling money into the market for mortgage investments. It is a good opportunity for people who are looking to lock in a lower mortgage rate and reduce their monthly costs, to get out of adjustable-rate mortgages, or to extract cash to pay down more expensive credit card debt. As rates drop, more people, in theory, qualify for loans because their monthly principal and interest payments will be lower. But to qualify for the best rates, borrowers need to have impeccable credit, or a credit score of 720 or higher as well as at least 10 to 20 percent of equity in their homes. It won't save people who are upside down on their mortgage or in danger of foreclosure.