the 1/2 percent fed interest drop today...?

No matter what type of arm, (unless it is a 6 mo libor), you will not see any effects, until you have the index adjustment, based on a 1, 2,or 3 year avg. margin during the time period that is based off your anniversary date, and the arm product you have. The calculation used is usually, (1yr arm), t-bill index avg. for the 1 yr time period from your anniversary date, to the following aniv. date. You should of been provided a disclosure at closing, that has an example. You can check these avg. in the wall st journal. Hope this helps! Good Luck!

generally the Fed rate is what pushes the prime lending rate up or down. the prime is what will raise or lower your ARM. So hopefully tomorrow you will start to see the banks lowering rates and also we should see prime drop. Although they are very related to eachother they are not the same. When the rates drop, switch to a fixed rate if you can

it depends you need to find out what index your ARM uses...

also, it will only affect it if it's time for the rates to adjust.