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.
By sending $1,300 to your lender monthly, you will overpay your mortgage by $1,200 annually, which is a 13th payment. Assuming a $300,000 mortgage at 4.000%, look at how the math works 1  : Bank-managed bi-weekly mortgage payments pays off in 26 years, 0 months.ith a mortgage, you pay a certain amount of interest on an annual basis and that amount is covered in your first twelve payments. The 13th payment has to go somewhere, though, so it gets applied to your principal balance; the amount that you still owe to the bank. And, this is how a bi-weekly payment plan works.