Advise displacees of the estimated payment for increased interest early enough in the negotiation of relocation entitlements to allow consideration of this payment in determining the new mortgage amount for the replacement dwelling purchased. This will reduce the mortgage principal balance to an amount that can be amortized using the same monthly principal and interest payment of the displacement dwelling mortgage.

FHWA’s MIDP form shall be used and submitted with payment requests. It is located on their website as follows:

The estimate is therefore made and offered before details of the new mortgage are known. The shown in the previous section produced an estimated payment of $7,989.50, which would be offered to the displacees with a full explanation of conditions required to receive this amount when a new mortgage is obtained. When the new mortgage balance obtained is less than the computed payoff balance, prorate the payment.

When a loan origination fee and/or purchaser’s discount points are involved in the new loan, compute increased interest payments as follows: