Silver Lining: How Much Your HELOC Payment Is About To Drop

Finally, good news. You'll probably see the minimum monthly payment on your home equity line of credit drop after the Fed cuts rates again tomorrow. That's because most HELOC rates are tied to prime. Here's how to calculate your savings:

Multiply the amount you owe by the rate decrease, and then divide the total by twelve. So, if you owe $200,000 and the rate drops by three-quarters of a point, the equation will look like this:

(200,000 x .0075)/12=125

The best use for the $125 you won't owe next month? Send it anyway to painlessly pay down the principal that you should have been paying down anyway to avoid getting into this mess in the first place.