Pi Day & Your Mortgage: How a Little Extra Can Save You Thousands!

Pi Day (March 14) isn’t just for math lovers and pie enthusiasts—it’s also a perfect time to talk about how small changes in mortgage math can lead to big savings. Just like the mathematical constant π (3.14) goes on forever, a 30-year mortgage can feel like it will never end. But what if I told you that a simple trick—making just one extra payment a year—could cut years off your loan and save you tens of thousands of dollars?

Let’s crunch the numbers with a real-world example.

The Power of One Extra Payment a Year

Imagine you have a $500,000 mortgage at 6% interest on a 30-year fixed loan. Here’s what your numbers look like without any extra payments:

• Monthly Payment (Principal & Interest): $2,997.75
• Total Interest Paid Over 30 Years: $579,190
• Total Cost of the Loan: $1,079,190

Yes, you read that right—over 30 years, you’d pay more in interest than the original loan amount! But here’s where the Pi Day Mortgage Hack comes in: making one extra payment per year can cut years off your loan and save you serious money.

Scenario: Adding One Extra Payment Per Year

If you pay just one extra monthly payment each year ($2,997.75) toward your mortgage, here’s what happens:

✅ Loan Paid Off in: Under 25 years (instead of 30)
✅ Interest Savings: $127,000+
✅ Total Cost of the Loan: $951,794 instead of $1,079,190

That’s five plus years off your mortgage and $127,000+ in savings—just for making one extra payment per year!

How to Make That Extra Payment Work for You

If paying a full extra month sounds tough, here are some ways to break it down:

🔹 Biweekly Payments – Instead of monthly, pay half your mortgage every two weeks. Since there are 52 weeks in a year, this results in one extra payment per year.

🔹 Round Up – If your payment is $2,997.75, round it up to $3,100. Even small additions chip away at interest over time!

🔹 Use Windfalls – Apply tax refunds, bonuses, or raises toward your mortgage instead of spending them.

Final Thoughts: A Sweet Deal for Your Mortgage

Pi is an endless number, but your mortgage doesn’t have to feel the same way! With a simple strategy like one extra payment per year, you can save thousands and pay off your home faster.

Want to see how much you could save with extra payments? Let’s run the numbers together—send me a message @ 704.675.7089 or email drew@purerate.com.

Happy Pi Day! 🥧🏡

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