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With the 2001 rate cuts behind we are seeing a steady drop in rates to the 40 year low of 6.10% 30 year fixed. Many now know that this can mean significant savings in finance charges when buying a house, refinancing a home loan or acquiring a new car. The question is how to take advantage of the cuts.

We will go through the steps of getting reducing finance costs by shopping for lower rates for those with the following loan needs:

1. Homebuyers: Finding your best mortgage loan
2. Home equity loan or line of credit, best options
3. Credit Card Holders, when to lower your rates be refinancing
Debt Consolidation Loans (credit card bills etc.)
5. Auto loans

All of the tips and figures below come from Mortgage Loan Search's editors and research staff and may include of consumer report data.

1. HomeBuyers: Experts suggest locking in a fixed-rate loan at 7 percent or lower.

Looking at the current pattern of rates drops almost each month since May 2002, Those seeking to lock in a fixed rate loan are at a great advantage. The rates remains the same during the life of the loan.

Smart Homebuying Moves: Before requesting a lock in know what you can afford in a home loan. Write up a budget and stick to it. When you're satified with your figures try the Loanweb quick qoute form to begin locating the best deal. Thirty-year rates averaged 6.96 percent in August 2001, Now 6.10%

If your seeking to buy a home and plan to live in a house for only a couple of years you might want to consider a short-term ARM now that rates on such loans have fallen. Keep in mind that ARM's have a good chance of rising from current levels.

One-year ARMs averaged 5.99 percent on August 15, 2001 according to a national weekly survey compared to well under 5.0% today. Click here to find a good deal on ARM rates in your area.

2. Home equity loans: Home equity loan rates are affected by the prime rate. The prime rate changes the day after the Federal Reserve cuts rates. You'll notice rates begin to decline at that time.

Smart Home Equity Moves: Experts suggested early in the year that equity loan borrowers wait until the end of a rate cut streak to take full advantage of the lower rates. Trends indicate that rates cuts may be coming to a close.

Now that streak has passed and drops are steady the next couple of weeks may be a great time to lock in a low equity loan rate. If you can afford to borrow, wait a couple of weeks for banks to adjust their rates to reflect the latest Fed cut, then pounce! But remember, you'll find the lowest rates on the shortest-term loans (say, three to five years).

Equity loan rates averaged 8.95 percent 1n August 2001.
They are at 7.50% today.

Home equity lines of credit: Line of credit customers are enjoying a significant low in rate payments compared to last year. As the prime rate is cut so the equity line of credit, which is tied to the prime rate. The rate is not expected to get much lower then present.

After rate cuts borrowers should allow time for the rates to adjust and reflect the Fed's latest cut. That's the time to lock in low fixed-rate equity loans.

Equity line of credit rates averaged 6.96 percent in August 2001. To find the current rate Click here

3. Credit cards: Cardholders usually don't see the rate adjustment in their bills until 2-3 months after a rate cut. The latest rate cuts  showed results in the Spring of  2002.

Other credit card customers are more fortunate. Their variable cards are re-priced monthly. These customers will see their rates drop very quickly by the same amount the rates drop. Still, with all the rate cuts last year and significant drops this year, some card customers have hit the minimum annual percentage rates allowed in their cardholder agreements. The interest rates on their cards won't drop any lower. Some variable rate cards come with minimum APRs or floors and some do not. Be sure to check your cardholder agreement.

Wise cardholder moves: Lowering your rate thereby lowering your future balances is the best move to make now. You can transfer a balance to a low, variable-rate credit card. The idea is to find a variable-rate card that's lower than the rates on the card your currently holding. then when the rates are cut again you'll see the adjustments in your statements in good time. To compare credit cards Click here for the lowest rates on the web.

4. Auto loans: Once you hear that rates have been cut or allowed to drop, anticipate a low in auto loans rates as well. Many Auto loan financers are connected to banks whose rate levels are also linked to the prime rate. These rates may or may not be competitive with auto manufacturer financing.

Wise auto shopper moves: When rates are drop dealers know that banks and credit unions will be offering competitive rates to draw consumers in. Dealers will likely offer equally or better financing and some attractive incentives. Dealer financing should be considered when shopping for a car. Competitive pricing and financing is often set to sell following a rate drop.

How can you take advantage of rates drops if you're still paying on a car loan. Consider refinancing.

Rates on 48-month new-car loans averaged 8.86 percent in August 2001. Rates on three-year used-car loans averaged 9.95 percent.Current auto loan rates

New 48 Mo. 6.58% 
Used 36 Mo. 7.14% 
New 36 Mo. 6.27% 
New 60 Mo. 6.62% 
To find local auto financing click here

LoanWeb.com for low interest rate shopping. Click on the Resource buttons for more information on lowering rates and financing options. LoanWeb.com Find The Lowest Rates On The Web.

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