I have read most of the comments here. Would like to add my own experience. I had taken my first home loan in the year 1999 for a tenure of 15 years at 14.5% interest!!! Over a period the rates started moving souhwards and I eventually paid up the loan in half of the time. Now I have taken one more loan. The rates have moved up now. However it will definitely cool down in the next year or so. Some of the readers have advised to liquidate other investments and repay the loan. Based on my experience this is not a wise option. If one selects long term equity linked products, it is possible to earn almost the same or higher rates than what you pay on your home loan. If you add up the tax benefits you will definitely gain. Therefore whatever may be the trend in interest rates a home loan is always a good product. It is very important to assess your long term capacity to pay the instalments and restrict your loan amount. Most of the persons who are facing the problems probably had gone for costly houses in upmarket areas. Sometimes it would be much better to have one bedroom less than having all the woes of higher EMIs!
