Of the many ideas being floated regarding fixing the economy, the latest, is the chorus of voices calling for a reduction on every one’s mortgage interest rate to under five percent.

Of course the devil is in the details and the likelihood of that actually happening is well – Here is what some are saying:

Would you go for a 40-year mortgage at a fixed 4 percent rate? Some high-profile television money personalities — Jim Cramer and Suze Orman — have been talking it up and generating a popular response.

“My thoughts were and are that if interest rates could come down to about 4 percent across the board — for everyone — that could start to stimulate the real estate market,” Orman said in an e-mail to ABC News. “For many, it may mean that they can keep their homes.”

Four percent interest, eh? Right now — if you qualify — you can, on average, get a 30-year mortgage at a fixed rate of about 5.3 percent. That means you would have a monthly payment of about $1,110.00 on a $200,000 loan. If you could get a 40-year mortgage at 4 percent, the monthly payment would be about $836. Both figures leave out property taxes, insurance and other possible fees.

Cramer, on his “Mad Money” show on CNBC last week, said the reduced payments could make a big difference for many homeowners.

Good idea?

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