New Delhi, Oct. 19 -- When buying a home, many home loan borrowers make decisions based on their current financial situation. As their careers progress and financial strength increases, their dilemma is whether to increase their home loan EMI and pay off the loan first, or invest the incremental amount in an SIP without changing their home loan payment schedule.

With home loan EMIs spread over a 20-25-year tenure, even small payments in the initial years can significantly reduce overall interest outgoings over time. A home loan EMI may look like a single consolidated payment; however, it consists of two components - outstanding principal and interest. In the initial years of repayment, the interest component of the EMI is much higher bec...