WASHINGTON (Reuters) - U.S. homeowners took advantage of falling interest rates and rising home values to extract $131.6 billion via mortgage refinancings in 2001 and early 2002, a study by Federal Reserve economists said on Thursday.

While consumers spent some of the money, they saved or invested more of it, according to a study published in the Federal Reserve Bulletin.

Homeowners used an estimated $20.7 billion of the cash for personal spending on items such as cars, vacations or medical services, the study said. Many others plowed an estimated $46.3 billion back into their homes for additions, new kitchens or items such as carpets or drapes, the study said.

Refinancers used about $28.1 billion to pay down non-mortgage debt and $5.8 billion to pay off second mortgages, the Fed study said. Around $27.5 billion in refinancing proceeds was invested in financial assets, real estate or businesses, it added.