Top Rate Financial Advice for 2009. And so they should be. If you are not, then you must be one of the lucky one's who are able to take advantage of this particular type of financial market.

BUT, where do you get Top Rate Financial Advice for 2009 and from whom do you get it? Who can you trust to give you the right advice?

The problem is most people who are giving the financial advice for 2009 have been trained in or are so used to a different type of market that the advice they are giving may not be what is best for today.

How much have you lost over the last year because you did what you were told to do by financial experts without really looking at what they were advising and understanding what was being done with your hard earned money?

Success Magazine has printed 128 pages of top rate financial advice for 2009. They feature Jean Chatzky, David Bach and Mark Victor Hansen, to name a few.

Is the advice you have been given in the past top rate? Let's look at what some experts have told their clients a little more closely so we can determine for ourselves if it was sound advice or not..

How many experts told you to keep your mortgage because you get a tax break when you have a mortgage?

Let us look a little more closely at the logic behind the tax break. If you can find any logic that is.

Here is really what you are doing. You are paying the bank/lender $1 of interest so Uncle Sam can give you back say 30 cents, depending on your tax bracket. OK, so what if you don''t give the $1 of interest to the bank? You save yourself 70 cents because you have to give Uncle Sam the 30 cents now. Am I right, or am I right?

If a tax write-off is so great then why don't you refi to a higher interest rate? Then you could get a bigger tax break, right? How dumb is that?

If you want a tax break, at least give your $1 donation to a worthy cause rather than to the bank/lender as interest.

Maybe, after you pay off your home mortgage (while receiveing a tax break), you could be your own bank and fund a 2nd property using a heloc on your residence. Would the heloc on your residence still qualify for a tax break? yes. And if you fund most of the 2nd property, you will have a way smaller mortgage. Then if you use the 6 bank strategies explained in my first 6 hubs you will still get your tax break, while saving yourself heaps of interest and paying off both the heloc and second property mortgage fast.

How much financial advice has been expertly given telling you to refinance your mortgage because you could lower your interest rate a fraction of a percent?

How many people really understand what refinancing means, I wonder? How many people figure the cost of the refi compared to the savings of the percent saved?

Here is the bottom line about refinancing. Usually if you are a first time home buyer your interest rate will not be as low as it shoud be according to your credit report. Why, because the lenders want you to refinance in the next 3 to 7 years. What happens when you refinance? You lose out big time. You lose money and you lose years. Here is how and why.

Here is a real life example: In Feb of 2007 Mr.Homebuyer, I say Mr. Homebuyer because he is not a Homeowner until he has paid the last payment due to the bank, purchased a home for $125 plus costs so the total mortgage was $134,000. This mortgage was made up of two mortgages, one was for $26,000 at 12.3% and the other was for  $108,000 at 9.2% which is variable so it will go up $100 every 6 months until the rate is 15%. Mr. Homebuyer tried to pay off the 2nd mortgage early but in using his own money he was only able to pay back $3,000 extra towards the principal. So now Mr Homebuyer owes at the end of two years around 133,000 and 28 years

Obviously, they will want to refi as soon as they can to get out of their adjustable rate and to lower their very high rates, which will not be hard to do.

So, because of the incredibly bad loan in this scenario it is best that they do, but here is the cost of the refi. In April of 2009 when they refi they will start back at 30 years and their new balance owing is going to be $150,000 due to closing costs, taxes, fees etc. etc. But hey, their interest rate is only 6% now in the form of one fixed mortgage. Whoopeee, the lenders achieved their goal of forcing this refi.and moving Mr. Homebuyer further in to debt.

Let us look at a more typical 30 year fixed mortgage amortization schedule to see exactly why lenders constantly encourage refinancing. And this also explains one reason why interest rates are what society in general has been taught to focus on, instead of all the factors which are just as relevant. Other factors like time (length of loan as well as how long you actually keep the loan) and the way the interest is calculated, amortized or average daily balance etc.).

that at year 5 Mr. Homebuyer has paid the bank $71,946 so far. We can also see that of that $72,000, only $13,891 has been paid down off the principal balance of the mortgage. The rest, $58,055, is interest the bank has earned from Mr. Homebuyer.

Again, this is why we cannot just look at the interest rate when determining how to manouver our money.

In essence the bank/lender has earned over 80% interest earnings off Mr. Homebuyer over this 5 year period.  $71,946 x 80% = $57,556.80 

I am focusing on year 5 of the amortization schedule because the national average for a homebuyer in America to either refinance or sell their home is between 3 to 7 years, so approx. 5 years.

Now that Mr. Homebuyer has decided to refinance let us see what that means.

1. He begins a new mortgage at month one of whatever term his new mortgage is for, let's say 30 years in this case.

2. Any equity he paid off during that 5 year period is now eaten up with the new loan's refinance costs of fees, taxes, da di da di da., so it is bye bye $13,000.

(We are only looking at the math here, we are not taking into consideration variables of market value fluctuations which could increase or decrease one's equity)

3. His monthly payments are divided between principal and interest with the largest amount going to interest all over again.

So if 40 year old Mr. Homebuyer continues to refinance every 5 years for say 25 years, like many people do, where will he end up in 25 years, at age 65.

1 x 5 yrs = $58,000 interest payments to bank. $13,000 refi costs = o equity

2 x 5 yrs = $116,000 interest payments to bank. $13,000 refi costs = 0 equity

3 x 5 yrs = $174,000 interest payments to bank. $13,000 refi costs = 0 equity

4 x 5 yrs = $232,000 interest payments to bank. $13,000 refi costs = 0 equity

5 x 5 yrs = $290,000 interest payments to bank. $13,000 refi costs = 0 equity.

Mr.Homebuyer ends up with another 30 year mortgage, starting at month one, or if he continues to live in this home without ever refinancning again he will now have $13,891 of equity and will be paid off, so he will own his home, at age 95.

So many people have lost the American dream of owning their own home and are expecting to die leaving their debt to their children. Is this wise financial advice? Is this a sound financial practice? Is their anywhere that the normal average everyday hard working citizen could invest their money and earn interest like the banks are earning off us?

There is an award winning system that educates you about your money so you will never have to refinance again. You don't have to take my word for it though, click on the highlighted 'click here' link below

How many financial experts educated you on how to use your bank accounts in a way that would have your money working for you 24/7/365 like the smart investors and the banks do?

How many teachers at school or college taught you the basic math behind borrowing and investing money? How many of these people actually know themselves?

I know I was always interested in this type of math but was never able to figure it out myself. Now I don't have to because I use a program that does it all for me. To read 128 pages of financial, very sound financial, advice, and I am confident in recommending this as 'sound' because I use this myself, click here.

Attitude towards money is also one major part of our experience with it. Here is an excellent hub that I think will help many people during 2009 to appreciate what they have.

The first of my 6 hubs on bank strategies is here.

(Jennifer Bhala Hansen is new to internet social networking. But, if this hub article has been interesting or helpful to you, a thumbs up rating and a comment would be much appreciated!) Thanks.

This hub post holds the intention of helping all who read it to learn, research, grow, and love our fellow humans/animals.

Information provided here is for EDUCATIONAL PURPOSES ONLY and is in NO WAY intended to replace proper financial advice. IT IS NOT to be construed as instruction on how to pay-off debt or overcome any financial situation the reader may be in.

Every individual is different, thus what may work for one may not work for another person. The writer of this hub post will not be held accountable in anyway if and when the readers of this hub post choose to apply the information they read for their own personal use. Consult with the professional financial authorities of your choice.

Remember, taking responsibility for your own wealth is your own personal decision: do your research and choose wisely. I commend you!