Every homeowner faces this question at some point or another: do you invest more money in your home loan to pay it out early, or invest and let it compound? There isn't a one-size-fits-all solution, because the wise thing to do is based on the rate of interest on your loan, your risk tolerance, and what you'd like your money to be accomplishing for you in the long run.

When prepaying is wise

If your home loan carries a high interest rate — say, above 9 percent — prepaying can be a great move. The guaranteed return from reducing your interest outgo often beats what you’d earn on a fixed deposit or a low-risk investment. Prepayment also brings emotional relief: owning your house outright means fewer monthly obligations and more financial breathing space. It’s especially worth it if you’r

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