Let’s Talk About Your House Purchase Caleb Hammer… (Caleb Hammer Audit)

Another question I had, so I just purchased a house, and we got Graham's opinion on it. You know, I've seen some online opinions about it too, which has been interesting. So I'm curious about your thoughts on the house. Well, generally speaking, when it's time to buy real estate, we tell someone, "Hey, real estate needs to be for your primary residence, like a 5 to 7-year forward-looking decision." Meaning, do you see that the circumstances you're in right now, whether it be employment, family, relational, and all that kind of stuff, are locked in for the next 5 to 7 years? So if I were to ask you that, do you feel like where you are right now, 5 to 7 years from now, your life will look the same as it does today? Some people tell me it will not, but I have a hard time not saying, "I love this house." There's some stuff I want to do in the backyard with the pool and stuff like that. But, I mean, I love the town, I'm here with all my friends, so I don't see me leaving Austin. So this has a place I can build out into, maybe not for content but for potential relationships if one of those ever happens. Sure, and 5 to 7 years could be a check. Could, oh, yes, sure, that's what we're asking. Is 5 to 7 years feasible? Because I bought my first house before my wife and I got married, and when she moved in, it always felt like my house, and she made it very clear that she wanted "our" house, you know what I mean? So it's kind of like a thing. But if you feel confident in the 5 to 7 years, that checks the first box. And I don't think that's crazy. So the other question, and this is a big one that a lot of people fall into, I'm feeling pretty optimistic for you, though. Okay, is it 25% of your gross income? Is it less than 20%? Definitely less than 20%, yeah. Okay, and then, but we know YouTube's variable. YouTube's variable, sure, right. But, are you getting close to that 25%? Is it like 24.9% or there's a lot of margin there. There's a lot of margin there. And how significant a down payment did you put on the house? 20%, yeah, 20%. So, first-time home, you know, we tell people all the time, for your first time, you only have to do three and a half to 5%. You don't have to do 20%. You already have equity in this home. So, you've checked one box, and then you've got a bunch of equity in it, and it's relatively minimal cost relative to your income. You've got a little bit of a nasty rate, though, like 6.5% or something. Okay, that's not great. You realize there are a lot of mortgages going out the door right now over 7%. And you look good, and plus you're going to get to deduct that interest. Some of it might touch, like right off the AGI, but what? So, let's say that rates drop in the next two, three, four, five years. What are you going to do? I would probably pull equity out. That's almost the right answer. You mean you're going to refinance to a lower rate, right? Yeah, yeah. If rates drop, I'm going to refinance below my 6.5%. In the long run, it's been a very long day. We've been recording a lot. Yes, I would refinance to a lower rate. So, 6.5% isn't great. I am of the opinion that you do a 30-year or a 15-year mortgage. Yes, a 30-year. I bet in the next 30 years, rates will drop to an extent where you'll be able to refinance that down. Okay, it wasn't a great rate early on, but you'll get four and a half, 5 and a half percent. So, was this house a stupid purchase? Well, I don't love how you ended up because it sounded more emotional than analytical. We just did an analytical exercise, but sometimes it's better to be lucky than good. And I gotta tell you, in the grand scheme of it, you can afford this house. And I can tell you're being so hard on yourself about this. But when we were actually going through our concerns and things that we want you to focus on financially, the house, especially when I hear how much you love this house, we're all for it. Water under the bridge, rock and roll, enjoy the best life in this house. That's good. I mean, I'm making some pretty awesome espresso out there. You guys saw the machine. I did see it. I'm excited to sample some of your barista skills. Yes. So I need to know, are you going to go to the other content guys that you've asked for their opinion and be like, "In your face, the money guys said it was okay"? See, I mean, you guys are the minds. Again, I've said it a couple of times. I don't know if it was on our show or your show, but you guys are the minds. So I mean, that's good to hear. I've heard people think that I made an impulsive choice on this, but I think people have taken it like, "Oh, I like this house. Okay, I'm going to get this house." And I got this house. So I was looking at potentially buying for a couple of months, and then this house stuck with me after visiting it like six times. And you know, after you visit like six times, you're like, "Okay, we're probably getting it." So I pulled the trigger on the house while looking for a house a little more impulsively. But, yeah. So maybe it's impulsive, but I think Rick Ross just bought a house for like $35 million. That's not this. Like, this is not Rick Ross. Has that money? Wow, these days he had that money, I guess. But you know what I mean. I just don't think this is going to be the thing that breaks you. I don't. It's a beautiful house, but it's not outlandish. I don't think you got way out over your skis in Austin. This is not a wild house, right? So, I don't have a whole lot of problem with it. Plus, our answer makes us your favorite, right? Yes, that's right. It's a win-win. I feel like we need to have a group audit on Rick Ross, though. Let's do Rick. If you're out there, we'd love to have you on. Financial audit by Caleb and Hammer in the money. I do like his video where he shows himself cutting his own grass, though. Big grass cutter. He cuts his own grass. I'll be honest, I do pay someone for that. For more information, check out our free resources.