Actually, that used to be the American dream. What happened in the last few years, is that folks started looking at owning homes more as an investment and a return on their money.

Experts now believe you should start by looking at a home as the place where you live, as opposed to the investment that is going to bring you financial freedom. One important lesson is to look for a home you can afford if times were to get tough, and at that point search for the best long-term loan you can find.

After you purchase your home, concentrate less on paying off the mortgage and more on using any non-essential income for the following goals: saving for retirement, paying off high interest/non tax-deductible debt, creating a 12-month fixed-expense rainy day fund or investing into diversified investments that carry some form of liquidity.

There are two perspectives every family and business owner should focus on.

The first plan is called the offense… the use of your income directed at financial goals such as buying a home, sending a child to college, and ensuring a comfortable retirement.

The second plan is the defense… in the event of injury, layoff, or premature death, what measures can you put in place to protect against the interruption of your financial goals? According to financial experts, not having adequate insurance coverage and retirement resources are examples.

During this recent downturn, “It’s been all about going upside-down on their mortgage.” This type of worry only occurs when people view their home as an investment, rather than a residence. Experts want us to think of our homes like we do our cars, choosing them for lifestyle and need, not as our investment accounts.

“The myth,” these experts say, “is many people think they will need less income at retirement. The reality is they would want to maintain their same lifestyle and often experience little change in expenditures.”

Experts are urging people to not give away their liquidity by prepaying their mortgage. Instead of focusing on debt elimination, turn your efforts toward wealth accumulation, but without trying to predict the future of the market.

Manage your mortgage. Make sure you have a competitive rate and that you are paying it on time. Don’t think of your mortgage as the lump sum bank debt. Rather, think of it as a monthly bill. In terms of refinancing, pay attention to the net monthly after-tax savings in relation to what the refi will cost and how long it will take to break even. If the refi can pay for itself in less than one year then it’s a good deal.

Financial security has nothing to do with not having a mortgage payment. If you can’t sell your home or get money out of it when you need to then what good is it?  One expert said, “I’d much rather have a big mortgage and a big bank account than no mortgage and nothing in my bank account.”

Our parents didn’t have investing tools like IRAs, 401Ks and 529s like we do. All they knew was to use their house as an investment, so paying it off made sense. The rules have changed, but somehow the mantra didn’t.

Experts Terrence Meyer, Jr. and Ed Conarchy.  Meyer is a financial representative for the Strategic Financial Group, Northwestern Mutual, in Los Angeles. Ed Conarchy is a nineteen-year veteran of the mortgage industry outside the Chicago area. He is also the founder of National Advisors Network, a registered investment advisory firm.