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Factors to consider before taking a home equity loan

Lavanya and Paresh Malhotra are looking for ways to raise funds and saving for goals. One of their earlier investments was in a house in which they now live. This has appreciated in value and the Malhotras are looking at taking a home equity loan, tempted by the lower interest rate, longer tenure and small monthly repayments. They feel they can use this locked-up value of the house to meet some goals and obligations. What are the factors they must consider while doing this?

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