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.
your payment on your first mortgage (including principal, interest, taxes, insurance and homeownerâs association dues, if applicable) is more than 31 percent of your current gross income; and. you canât afford your mortgage payment because of a financial hardship, like a job loss or medical bills.