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Q: I've wanted to buy a house for ages. How far do you think mortgage interest rates will drop? Will they go low enough for current homeowners to refinance?

Larry Edelman: Actually, rates on home loans had already dropped in anticipation of the Fed's action; the average rate on a 30-year fixed loan was 6.1 percent this week. That's down from 6.5 percent a month ago and 7.8 percent last October. Whoot! Mortgage rates don't move in lock-step with the Fed, but they should fall even more when the central bank makes additional cuts. But here's the thing: No one expects a return to the days when mortgages were under 3 percent. We probably won't see rates under 5 percent for a while, if ever.

As for refinancing, it all depends on your loan rate. The rule of thumb is that current rates should be 1 to 2 percentage points below your existing rate so that you save enough on your monthly payments to justify the refinancing costs.

Q: Lots of people have student loans and/or credit card debt. Will this cut affect either of those?

Larry: Most federal student loans carry a fixed rate, so they won't change. Some private student loans have a variable rate, but as our colleague Sean P. Murphy points out, private student loans do not offer the same benefits as federal student loans, such as deferment, repayment plans, and forgiveness programs.

As for credit cards, their outrageously high interest rates do change along with the prime rate, which is typically pegged to Fed rates. Will you notice a difference? Probably not, so keep paying your balances off each month if you can.

Q: I'm also thinking about my savings. It looks like this cut will mean that the interest rates on savings accounts will drop. Where should I put my money now?

Larry: Yes, the downside of the Fed lowering rates is that yields on bank CDs, money market funds, and online savings accounts will fall. If you've got any spare cash that you can afford to lock up, put it into an FDIC-insured CD before rates drop more. You could also consider short-term government bills that mature in a year or less.

Q: I read that the Federal Reserve cut rates so much because it's worried about the job market. How are those two things connected?

Larry: Employers are hiring less than they were last year because consumers are spending less and there's uncertainty about the economy and the election. But lower interest rates will help the economy by making it cheaper for consumers to borrow money and for businesses to get loans for expansion. And when they expand, they hire.

Q: Is there anything else people should know about how this interest rate cut will affect them?

Larry: We're in uncharted territory. Usually the Fed cuts rates after there has been some sort of shock to the economy — like the pandemic — or when a recession has started. Today, the Fed is taking preemptive action. It could be up to a year or more before the full impact of lower rates works through the economy. So it's far from clear whether the Fed can forestall a slowdown.

The Globe's Sean P. Murphy has more on how the Federal Reserve's interest rate cut may affect you in his column, The Fine Print.