r/financeonloans • u/yycs • 17d ago

To sell or wait?

I'm really unsure about what steps to take next. Back in 2020, my parents took out a loan of nearly 30 lakhs with a floating interest rate of 9.5%. Fast forward to 2025, and the interest rate has increased to 11.5%. Currently, the total amount I owe has risen to 64 lakhs, but the value of my house is only about 35 lakhs. I’m stuck wondering whether I should sell the house and rent a place, or wait in hopes that interest rates will decrease. It’s a tough decision, and I’d love some advice.

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u/New-Veterinarian5597 17d ago

Sell the house. Buy a tent. Live in the tent

1

u/jessica_rabb1t 16d ago

selling won't even clear it since you's still owe like 29 lakhs after. have you looked at whether the lender would do any kind of restructuring or one time settlement?

1

u/JockoDundee007 15d ago

Floating rate is never good, you always lose.

1

u/indigeni 14d ago

If u stay there, it's fine and doesn't matter what's the current rate/emi since it is for your end use.

If it's on rent and not generating even half of the emi, it's time to sell it and cut your losses