teaboy, it is good to see some one else is using this approach to get some money out of home. I have done this successfully a number of times with 25k getting in rebates since last year.

My latest is around 6800 cash back on the closing which happened today.

This approach works in falling interest rate environment with out much risk. In rising interest rate environment one has to take a risk of getting locked into higher interest rate.

I also consider interest payments as rent payments (as teaboy mentioned) and thinking that I am buying a home a year later with reduced price.

My latest is 20 year refinancing. Last year when I bought home it was 30 year 4.875. Now I am at 20 year with payment increased only by $250 per month compared to first financing and top of that I made 25K tax free with refinancing. Even if I may not able to refinance to lower rate in future I am fine with this payment.

Like any other investment this may not work for every one. So one has to make choice to use it or not. In my case it happened that I able to use and make it work for me so far.