Loan Analysis, Comparison, and Amortization

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