When there is more than one mortgage on either the acquired dwelling or the replacement dwelling or on both dwellings, compare the mortgages in the order they occur, (i.e., first, second, third). Since the various mortgages compared will not be equal, compare any balance left of a given mortgage with an equal amount of the next mortgage of the other property. On each comparison, use the shortest term. After all the mortgages on either property are compared with mortgages of the other property, sum the total computed payments derived from each comparison to determine the increased interest payment to the displacee. Since the total mortgage for each property will not usually be the same, the remaining portion of the mortgages on the dwelling with the largest total will not enter into the computations - just as though there was only one mortgage on each property and the computations were based on the lowest mortgage sum. An example of these calculations follows:

Monthly payment for $8,375.00 at 5% for 144 mos. = $77.46 ($8,375 PV; 5.0) 12 = % int.; 144 = n; 2nd pmt.)

Payment of $77.46 at 8% for 144 mos. will pay off a mortgage in the amount of $7,155.97 ($77.46 = Pmt.; 8) 12 = % int.; 144 = n; 2nd PV)

$8,375.00 minus $7,155.97 = (Int. Payment) $1,219.03

At this point, the entire existing first mortgage is accounted for leaving a balance of $625 in the first mortgage of the replacement property. The $625 is compared to $625 of the second of the existing mortgages as follows:

Monthly payment for $625 at 6% for 27 mos. = $24.80 ($625 = PV; 6 |12 = % int.; 27 = n; 2nd pmt.)

Payment of $24.80 at 8% for 27 mos. will pay off a mortgage in the amount of $610.94 ($24.80 = Pmt.; 8 | 12 = % int.; 27 = n; 2nd PV)

$625.00 minus $610.94 = (Int. Payment) $14.06

A balance of $121 remains in the second of the existing mortgages which is compared to $121 of the second mortgage of the replacement dwelling as follows:

Monthly payment for $121 at 6% for 27 mos. = $4.80 ($121 = PV; 6 |12 = % int.; 27 = n; 2nd pmt.)

Payment of $4.80 at 9% for 27 mos. will pay off a mortgage in the amount of $116.93 ($4.80 = Pmt.; 9 | 12 = % int.; 27 = n; 2nd PV)

$121 minus $116.93 = (Int. Payment) $4.07

The entire existing second mortgage is accounted for, leaving only the $137 existing third mortgage that will be compared with $137 of the remaining $1,604 balance of the second mortgage on the replacement dwelling as follows:

Monthly payment for $137 at 7% for 9 mos. = $15.67 ($137 = PV; 7 | 12 = % int.; 9 = n; 2nd pmt.)

Payment of $15.67 at 9% for 9 mos. will pay off a mortgage in the amount of $135.88 ($15.67 = Pmt.; 9 | 12 = % int.; 9 = n; 2nd PV)

$137 minus $135.88 = (Int. Payment) $1.12

The remaining $1,467 balance on the second mortgage on the replacement dwelling is not considered, since it was the displacee’s decision to borrow more money on his/her replacement dwelling than on his/her existing dwelling, which is not required. The total interest payment is the sum of the four computations as shown below:

First Computation = $1,219.03

Second Computation = $14.06

Third Computation = $4.07

Fourth Computation = $1.12

Total Increased Interest = $1,238.28