People who bought homes in the past two years may want to seek a lower interest rate. Here’s how to think it through — and how to shop.

Refinancing your mortgage can help you get a lower monthly payment. You also have the opportunity to change up your loan type and term. A cash-out refinance is another mortgage refinancing option that lets you convert home equity into cash. That lump sum could pay for a home renovation or to retire high-interest credit card or student loan debt.

On the other hand, home equity loans typically have fixed rates, set when you take out the loan. So, if you currently have a HELoan, its rate won’t change with the Fed’s cut. You might want to consider refinancing to snag those lower rates. (More on that later.) Of course, new home equity loans can, and do, reflect any rate change by the Fed.

The Federal Reserve lowered its key interest rate by a hefty half percentage point Wednesday, moving ahead with its first rate cut in four years.

The Fed’s rate cut will touch every corner of our financial lives, from the cost of borrowing money to buy a home or car to how much cash earns in the bank. How quickly the effects reach your wallet w