[JohnW]

WTW,

We were really talking about people taking the equity out of their property because they feel "rich" due to the appreciation that has been happening over the past 3 years or so. You were obviously just trying to transfer the amount you owed to a different lender in order to secure a lower interest rate. It is also pretty obvious that you are a good credit risk as the company to which you applied wanted to lend you more than you asked for. Of course, there often are minimum limits to people taking out a first mortgage, which re-financing really is, you're just swapping one first mortgage for another. We were really discussing 2nd. mortgages or home equity lines of credit.
What people need to remember when digging into their equity is that, generally, the whole housing market is appreciating and that when the time comes for them to upsize; the equity they have in the house they are selling will be needed to put down a bigger deposit on a far more expensive house. All I am really trying to say is that the equity in your house should be left where it is except in cases of emergency. I do, of course, realise that not everyone is blessed enough to be able to do this, like people being made redundant and things like that. However, irresponsible frittering, like taking out a few grand to go on a world cruise, should be avoided. IMHO.