What is the frum percentage?

amother

OP ↓

Yesterday at 5:18 pm

I heard that a person's housing should be 25% of your take home pay.
Considering tuition of a frum family, what would you say a frum persons housing expense percentage be?

amother

Bluebell

Yesterday at 5:37 pm

Housing is less than 5% of gross.
Tuition is 60% of net. We get a tuition break but I’m pretty sure it’s higher bc our housing is low (we own with no mortgage that is subtracted from our future yerusha). I pay high property tax though.

amother

Lilac

Yesterday at 5:51 pm

What it should be or what it is?
Really it should be 15-20%.

We're paying 38%. We've never been able to save for a down payment because we've paid tuition. Now house prices have skyrocketed both buying and renting. We're renting now for 38%. If we bought something, the smallest that we can physically squeeze into, we would be paying 46% of our income to house, insurance, and tax
Moving OOT won't help. DH job is not transferrable at this rate. We looked. In Chicago he would get paid 12% less, in Cleveland 23% less, etc. And he has a masters.
So we pay 38%, beg, borrow and put on the credit card 20% for tuition. Get Tomchei Shabbos as per our Rav so we can put a few dollars away and maybe eventually we'll be able to buy something.

amother

Amaryllis

Yesterday at 6:31 pm

Those of you who are in houses that are such a small percentage, are you large earners or live in an inexpensive area?

amother

↑ OP

Yesterday at 6:38 pm

I wasn't asking what your percentage is but more what it should be considering tuition expenses.
Can you afford your house? Is usually about keeping to that 25% number. What do you think is a percentage that is safe for considering if you can afford a house payment or not.
It is interesting to hear what people's percentage is.

amother

Bellflower

Yesterday at 6:42 pm

amother Amaryllis wrote:

Those of you who are in houses that are such a small percentage, are you large earners or live in an inexpensive area?

Ours is about 20% . We bought recently with an oversized down payment.

amother

NeonPurple

Yesterday at 7:28 pm

We would like to buy this year. We make around 225 net. Our mortgage will likely be around 4500/month (all inclusive) for a tiny house in Passaic Sad

Thats’s 24%. It scares me but I think it makes more sense to buy a house than to rent a larger apartment for 1500 less.

amother

Mint

Yesterday at 8:16 pm

I thought I heard somewhere (maybe Dave Ramsey) that your house should be not more than 3 times your salary. We bought our house about 10 years ago for less than a thrww times of income. Almost but not quite. I think our mortgage is currently about 15% of our income but I could be off.

amother

RosePink

Yesterday at 8:21 pm

I don't think most of us have much of a choice. There are limited options, both for renting and buying, in areas with a frum infrastructure. Most people try for the cheapest reasonable option. (Obviously "reasonable" is subjective.) I don't think most of us have the luxury of setting a firm budget, if all of the housing in the area is above that.

amother

↑ Aster ↓

Yesterday at 8:30 pm

amother OP wrote:

Well since tuition eats up about 30% minimum so housing shouldn't be more than 20%. But usually both are a lot more.

amother

Hosta ↓

Yesterday at 8:36 pm

We bring home about 140k
Our tuition is 40k for 5 kids - 29% of income

We just bought a tiny house for our family of 7
Mortgage/ins/taxes is 3000 a month - 27% of income

GLUE

Yesterday at 8:37 pm

the U.S. government holds that housing should not be more then 30% of your told income.

I don't know what the Frum % should be

amother

Burgundy

Yesterday at 8:40 pm

I’m going to be honest, my mortgage is 25% of our monthly gross and close to 45% of our monthly net. Should I be concerned waiting for the bomb to drop? Our tuition is 25% of our monthly net. We don’t have much left over at the end of the month but we usually have something. Am I missing something crucial?

amother

Skyblue

Yesterday at 9:04 pm

Our mortgage and taxes are 50% of our net income. That's because I gave up a comfortable 6 figure job to be a sahm and gig worker. We get tuition breaks and state health insurance. I don't feel bad. Once upon a time when I was a high earner, tuition was 70% of our net income. I was subsidizing plenty of tuition breaks myself. No tomchei shabbos or other tzedaka. I think if we needed anything more than tuition breaks, I would go back to work.

amother

Yarrow

Yesterday at 9:15 pm

How do some of you have it down so low with a mortgage? Rent is 30% of my husbands net income. And we’re thinking of pushing it to 50% of mine and my husbands income and taking a mortgage, as that’s the only way we can buy. We do have additional investments that can help us out if need be.

amother

↑ Hosta

Yesterday at 9:25 pm

Quote:

We bought a small house OOT almost 15 years ago and took out a 15 year mortgage. Bh the value tripled and we sold last year and walked away with 420k. We moved to another OOT community and just bought another small house (1800 sq ft with no basement) and put down 35%. That's why our mortgage is so low. People think we're crazy to be living in such a small house with five kids, but we're being realistic about what we can afford.
And even with that, our tuition and mortgage are 60% of our income

amother

↑ Aster

Yesterday at 9:36 pm

amother Yarrow wrote:

We bought 12 years ago out of town. It's an old house and a fixer upper. Then we refinanced into a 15 year mortgage. If we kept it at a 30 year our payment would be even lower.