pulling cash out without selling the asset

[Jason Schmidt]

i've been reading a book, and it was speaking of leverage. it gave the following example:

price paid : $150,000
down payment : $30,000
original loan : $120,000
appreciation (assuming 1 year @ 6.1%) $9,150

method 1
borrow against equity:
secondary loan: $9150
cash out: $9150

method 2
new loan: $129,150
cash out: $9,150

does this cost anything to do? I guess i just don't understand fully. It sounds almost the same as just getting a credit card with a credit line of $9,150. what am i missing?