The monthly payment required to repay a $320,000 mortgage at 6.5% interest compounded monthly for 12 years is approximately $3,206.15.
To calculate this, we can use the formula for a mortgage payment:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
where:
M is the monthly payment
P is the principal amount of the loan ($320,000)
r is the monthly interest rate (6.5% / 12 = 0.541667%)
n is the total number of payments (12 years * 12 months/year = 144)
Plugging these values into the formula, we get:
M = 320,000 * (0.00541667 * (1 + 0.00541667)^144) / ((1 + 0.00541667)^144 - 1)
M ≈ $3,206.15
Therefore, your monthly payment would be approximately $3,206.15.