As the interest rates of the home loans increased, borrowers were faced with a dilemma. They had to choose between the option of either lengthening the tenure of the loan or meet up with a higher EMI. Similarly, the lowered interest rates would mean that borrowers can either shorten the term or bring down the EMI.

Experts advise to choose in favor of short term loans as against smaller EMIs to ensure a lower interest payout. This way even if the rates do increase further at a later date, the borrowers would have paid up a larger fraction of the borrowed sum. Also in the case of an increase in the interest rate, the borrowers always have a chance of increasing the tenure.