For example, Mr. Sage H. School purchased his home in 2000, put $50,000 down and secured a 30-year $200,000 mortgage at 8%. His payments are $1,600 per month, which he is extremely comfortable with, and as a bonus his neighbor (who owns a loan brokerage firm) sold his home for $450,000. Mr. School seeks out a new loan and refinances at 5%, which reduces his monthly mortgage to approximately $1,200 per month. This $400 per month windfall buys several new televisions, a new car, meals out, and a few get-away weekends throughout the ensuing months. Several local businesses as well as industries that manufacture large durable goods benefit from Mr. School's refinancing plan. Another way people are getting their hands on money is by tapping into their "appreciated- home equity. Unlike home equity that is realized through paying the principle portion of your mortgage, "appreciated- home equity is obtained through the escalating value of one's home. Banks encourage their patrons to borrow against the value of their home to finance home improvement projects as well as other large purchases. Clever individuals use their home equity loan to purchase items unrelated to their home that if paid for using a credit card would not quality for an interest write-off and then claim the interest as a part of their mortgage interest on their taxes. For example, Mr. School who's home has appreciated some $200,000 decides to take out a home equity line of credit for $100,000 at a 6% interest rate and use the money to take a well-deserved 6-month vacation. He has a great time and returns home rested and relaxed, totally ready to face his new payment plan. Lets see, $1,200 per month for his new lower-interest rate home mortgage, and about $500 for the home-equity line of credit. Wait, how could this be $1,700 per month!! Mr. School now owes more money per month than he did before his obtained his new lower-interest loan.