How bad do you want to be successful?  Great video…

http://www.youtube.com/watch?v=pAJPPjGrU7g&feature=player_embedded

What is the payment on a loan of $31,500 at 4.75% amortized over 12 years?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 04/23/2012 problem:

(N=144,I=4.25,PV=31500,FV=0) PMT=$279.63

You purchase a note with 48 payments of $250 for $8000.  What is your return?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 03/12/2012 problem:

(N=216,I=8,PV= -150,000, PMT=0) FV=$630,086.13

If you invested $150,000 today at 8% and let it compound monthly for eighteen years, how much money would you have?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 02/27/2012 problem:

(I=3,PV=20,000,PMT= -300, FV=0)  N=73.02

A seller agrees to finance the balance of $20,000 at 3% with payments of $300 a month.  How long will it take to pay off the loan?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 02/13/2012 problem:

(N=360,I=4.5,PV=65,000,FV=0) PMT=329.35

Updated Home Affordable Refinance Program (HARP) by the Federal Housing Finance Agency:

• The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
• Removed the 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac.
• Eliminated the need for a new property appraisal where there is a reliable automated valuation model (AVM) estimate.
• Borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.
• Extends the end date for HARP until December 31, 2013.

Looks like the HARP program is going to get some modifications that might allow you to refinance at the lower rates that are available today.  If you have not used the HARP program to modify your mortgage, I would encourage you to talk to your lender.  If you didn’t qualify before, you might be eligible after December 1.

http://money.cnn.com/2011/10/24/real_estate/housing_refinance/

HUD is looking at a range of options for the inventory of foreclosed houses that the government is sitting on including turning them into rentals.

http://www.fhfa.gov/webfiles/22367/FHFARFIReleaseFinal.pdf

http://www.washingtonpost.com/blogs/ezra-klein/post/can-a-new-plan-to-rent-out-foreclosed-properties-actually-work/2011/08/10/gIQAO0YA7I_blog.html

A blog post from Marcus Millichap that has some data on the double dip in real estate.  One interesting piece of data was the estimate that 28% of single family mortgages are underwater. 

http://blog.marcusmillichap.com/

A good interview with Professor Robert Shiller.  As he said, “it’s very hard to forecast”.  Nobody knows.

http://finance.yahoo.com/blogs/daily-ticker/shiller-housing-could-fall-another-25-harder-predict-112122844.html?sec=topStories&pos=8&asset=&ccode=