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.
Finding out how much you owe on your mortgage is easy. Just look at your monthly statement for the remaining principal. Finding out the value of your home is much trickier. The adage âa home is worth what someone will pay for itâ is not entirely accurate. Sometimes buyers pay too much for a home and spend years paying off a mortgage thatâs bigger than it should have been.