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?

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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