Paying off principal reduces your overall loan amount and interest, but it does not change your instalment as your instalment is already part of your legal financial obligations (through loan documents and letter of offer) and is reported for your CCRIS. If want to lower you need to redo the documentation, call your bank to see if you can restructure your loan to reduce instalment amount (or refinance at a different bank with lower interest rates).

If you die² want to and you're able to fully settle the loan in full then can clear, although unless you are really cash rich, it's a strange decision to make in terms of credit health and overall liquidity, IMO.

Because home loan interest rates are not so high that it justifies not using that money to invest elsewhere, when such a large amount is involved. Home loan is also considered a form of healthy credit if you make repayment on time, will help with future credit application.

Even EPF dividend rates better than home loan, would only recommend that kind of full settlement if the home is not profit making/you want to dispose of the property/your DSR burst already and you have difficulty with credit.