The LOAN procedure provides analysis and comparison of mortgages and other installment loans; it includes the following features:

• ability to specify contract terms for any number of different loans and ability to analyze and compare various financing alternatives

• analysis of four different types of loan contracts including the following:

  • fixed rate

  • adjustable rate

  • buy-down rate

  • balloon payment

• full control over adjustment terms for adjustable rate loans: life caps, adjustment frequency, and maximum and minimum rates

• support for a wide variety of payment and compounding intervals

• ability to incorporate initialization costs, discount points, down payments, and prepayments (uniform or lump-sum) in loan calculations

• analysis of different rate adjustment scenarios for variable rate loans including the following:

  • worst case

  • best case

  • fixed rate case

  • estimated case

• ability to make loan comparisons at different points in time

• ability to make loan comparisons at each analysis date on the basis of five different economic criteria:

  • present worth of cost (net present value of all payments to date)

  • true interest rate (internal rate of return to date)

  • current periodic payment

  • total interest paid to date

  • outstanding balance

• ability to base loan comparisons on either after-tax or before-tax analysis

• report of the best alternative when loans of equal amount are compared

• amortization schedules for each loan contract

• output that shows payment dates, rather than just payment sequence numbers, when starting date is specified

• optional printing or output of the amortization schedules, loan summaries, and loan comparison information to SAS data sets

• ability to specify rounding of payments to any number of decimal places