Most of us bank upon a lender (bank or non banking financial company) whenever we plan to buy a home. This loan is returned by paying regular EMIs to clear the debt since it is not feasible to pay the entire amount at one go. At the same time, we have the option to foreclose our loan by paying a huge chunk of money at one go. It is an individual choice to foreclose or prepay a loan. Some people who are able to, do try to prepay for their peace of mind of being debt free. Generally, most housing finance companies do not charge prepayment charges for any principal repayment made ahead of the EMI schedule for floating rate loans.
For home loans on fixed/dual rate basis or any other non-standard floating rate loans, there could be a pre-payment charge of 1-2 per cent of the prepaid amount. However, there could be a lock-in period for such non-standard loans after which pre-payment charges are nil.