Letâs look at a hypothetical spontaneous chemical reaction: The quantity of usable energy (chemical potential) in a reaction is called the Gibbs Free Energy (DG). DG is the difference between the energy contained in the products of a reaction and the reactants: DG = (energy of products) - (energy of reactants)
That's why some financial experts feel it's more realistic to think in terms of your net income, aka take-home pay, and that you shouldn't use any more than 25% of your take-home on your mortgage payment.
These calculators work primarily by figuring out your debt-to-income ratio and then how much you can afford to pay for your monthly mortgage payment. This is similar to how banks decide how much to lend you. The typical bank limit on monthly mortgage payments is about 28 percent of your gross monthly income.Therefore, the bank thinks you can devote up to 28 percent of your household income to your mortgage payment and expenses (including taxes, insurance and association dues).or example: Your goal mortgage payment, plus expenses, is $1,500 per month, and you pay $700 per month in rent. So each month when you pay rent, youâll also put $800 into your savings account. At the end of six months, youâll have a pretty hefty savings account.