Overview: LOAN Procedure

The LOAN procedure analyzes and compares fixed rate, adjustable rate, buydown, and balloon payment loans. The LOAN procedure computes the loan parameters and outputs the loan summary information for each loan.

Multiple loan specifications can be processed and compared in terms of economic criteria such as after-tax or before-tax present worth of cost and true interest rate, breakeven of periodic payment and of interest paid, and outstanding balance at different periods in time. PROC LOAN selects the best alternative in terms of the specified economic criterion for each loan comparison period.

The LOAN procedure allows various payment and compounding intervals (including continuous compounding) and uniform or lump sum prepayments for a loan. Down payments, discount points, and other initialization costs can be included in the loan analysis and comparison.

The LOAN procedure does not support an input data set. All loans analyzed are specified with statements in the PROC LOAN step. The SAS DATA step provides a function MORT that can be used for data-driven analysis of many fixed-rate mortgage or installment loans. However, the MORT function supports only simple fixed rate loans.