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.
If I put the recommended 20% down, or $40,000, on a $200,000 home in Tennessee, Iâd pay as little as $730 a month in mortgage payments, according to this Bank of America calculator. This assumes a 3.7% APR, solid credit, and a fixed 30-year loan.