The Federal Reserve has just cut rates in an emergency meeting and more cuts are expected down the road as they tried to stave off a recession. So, is now the right time for you to refinance your mortgage? Well, lending standards have tightened substantially since the last time you probably got your mortgage. It is more difficult for those with poor credit to get an attractive refi offer. Today, you'll need 20 percent equity in your home and a credit score of 760 to even be considered! In short, those who have adjustable rate mortgages facing a higher reset may want to consider refinancing into a fixed low interest rate loan now if they have good credit - the time is right!

From CNN Money:
With the recent Federal interest rate cuts, is this a good time to refinance my home loan? What things should I take into consideration prior to refinancing i.e. credit score? - Ricardo, Florida

The bottom line is: if you have good credit, you'll be a winner. Falling mortgage rates are great for homeowners looking to refinance. This is especially true if you face an adjustable rate mortgage reset. But lenders are getting stricter. Today you'll need 20 percent equity in your home and a credit score of about 760 depending on the loan you get, to even be considered for a refinance. One mortgage broker we talked to said that in the past 8 out of 10 people who walked through the door were able to refi. Today, that number is more like 3 out of 10. So, if you don't have great credit, you want to focus on paying off high-interest debt, mailing in your payments on time and don't apply for any other credit in the meantime. Keep in mind, refinancing isn't free. It can cost 1-2 percent of the value of the loan.