A 15-year buydown rate loan is another alternative to finance the $100,000 investment. The nominal annual interest rate is 6.5% initially and will increase to 8% and 9% as of the 24th and 48th payment periods, respectively. The nominal annual interest rate is lower than that of the fixed rate alternative, at the cost of a 1% discount point ($1000) paid at the initialization of the loan. The following BUYDOWN statement represents this loan alternative:

   proc loan start=1998:12;
      buydown amount=100000 rate=6.5 life=180
              buydownrates=(24=8 48=9) pointpct=1
              label='BANK4, Buydown';
   run;