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.
You pay a little more on your monthly payment and the lender holds the funds and disburses them to the correct parties when due. The mortgage company makes nothing off the escrow account-it's for paying the taxes and insurance.Interest is calculated on the principal balance of the loan ONLY.ou pay a little more on your monthly payment and the lender holds the funds and disburses them to the correct parties when due. The mortgage company makes nothing off the escrow account-it's for paying the taxes and insurance.