# The LOAN Procedure

### FIXED Statement

Subsections:
• FIXED options;

The FIXED statement specifies a fixed rate and periodic payment loan. It can be specified using the options that are common to all loan statements. The FIXED statement options are listed in this section.

You must specify three of the following options in each loan statement: AMOUNT=, LIFE=, RATE=, and PAYMENT=. The LOAN procedure calculates the fourth parameter based on the values you give the other three. If you specify all four of the options, the PAYMENT= specification is ignored, and the periodic payment is recalculated for consistency.

As an alternative to specifying the AMOUNT= option, you can specify the PRICE= option along with one of the following options to facilitate the calculation of the loan amount: AMOUNTPCT=, DOWNPAYMENT=, or DOWNPAYPCT=.

#### Required Specifications

AMOUNT=amount
A=amount

specifies the loan amount (the outstanding principal balance at the initialization of the loan).

LIFE=n
L=n

gives the life of the loan in number of payments. (The payment frequency is specified by the INTERVAL= option.) For example, if the life of the loan is 10 years with monthly payments, use LIFE=120 and INTERVAL=MONTH (default) to indicate a 10-year loan in which 120 monthly payments are made.

PAYMENT=amount
P=amount

specifies the periodic payment. For ARM and BUYDOWN loans where the periodic payment might change, the PAYMENT= option specifies the initial amount of the periodic payment.

RATE=rate
R=rate

specifies the initial annual (nominal) interest rate in percent notation. The rate specified must be in the range 0% to 120%. For example, use RATE=12.75 for a 12.75% loan. For ARM and BUYDOWN loans, where the rate might change over the life of the loan, the RATE= option specifies the initial annual interest rate.

#### Specification Options

AMOUNTPCT=value
APCT=value

specifies the loan amount as a percentage of the purchase price (PRICE= option). The AMOUNTPCT= specification is used to calculate the loan amount if the AMOUNT= option is not specified. The value specified must be in the range 1% to 100%.

If both the AMOUNTPCT= and DOWNPAYPCT= options are specified and the sum of their values is not equal to 100, the value of the downpayment percentage is set equal to 100 minus the value of the amount percentage.

COMPOUND=time-unit

specifies the time interval between compoundings. The default is the time unit given by the INTERVAL= option. If the INTERVAL= option is not used, then the default is COMPOUND=MONTH. The following time units are valid COMPOUND= values: CONTINUOUS, DAY, SEMIMONTH, MONTH, QUARTER, SEMIYEAR, and YEAR. The compounding interval is used to calculate the simple interest rate per payment period from the nominal annual interest rate or vice versa.

DOWNPAYMENT=amount
DP=amount

specifies the down payment at the initialization of the loan. The down payment is included in the calculation of the present worth of cost but not in the calculation of the true interest rate. The after-tax analysis assumes that the down payment is not tax-deductible. (Specify after-tax analysis with the TAXRATE= option in the COMPARE statement.)

DOWNPAYPCT=value
DPCT=value

specifies the down payment as a percentage of the purchase price (PRICE= option). The DOWNPAYPCT= specification is used to calculate the down payment amount if you do not specify the DOWNPAYMENT= option. The value you specify must be in the range 0% to 99%.

If you specified both the AMOUNTPCT= and DOWNPAYPCT= options and the sum of their values is not equal to 100, the value of the downpayment percentage is set equal to 100 minus the value of the amount percentage.

INITIAL=amount
INIT=amount

specifies the amount paid for loan initialization other than the discount points and down payment. This amount is included in the calculation of the present worth of cost and the true interest rate. The after-tax analysis assumes that the initial amount is not tax-deductible. (After-tax analysis is specified by the TAXRATE= option in the COMPARE statement.)

INITIALPCT=value
INITPCT=value

specifies the initialization costs as a percentage of the loan amount (AMOUNT= option). The INITIALPCT= specification is used to calculate the amount paid for loan initialization if you do not specify the INITIAL= option. The value you specify must be in the range of 0% to 100%.

INTERVAL=time-unit

gives the time interval between periodic payments. The default is INTERVAL=MONTH. The following time units are valid INTERVAL values: SEMIMONTH, MONTH, QUARTER, SEMIYEAR, and YEAR.

LABEL='loan-label'

specifies a label for the loan. If you specify the LABEL= option, all output related to the loan is labeled accordingly. If you do not specify the LABEL= option, the loan is labeled by sequence number.

POINTS=amount
PNT=amount

specifies the amount paid for discount points at the initialization of the loan. This amount is included in the calculation of the present worth of cost and true interest rate. The amount paid for discount points is assumed to be tax-deductible in after-tax analysis (that is, if the TAXRATE= option is specified in the COMPARE statement).

POINTPCT=value
PNTPCT=value

specifies the discount points as a percentage of the loan amount (AMOUNT= option). The POINTPCT= specification is used to calculate the amount paid for discount points if you do not specify the POINTS= option. The value you specify must be in the range of 0% to 100%.

PREPAYMENTS=amount
PREPAYMENTS=( date1=prepayment1 date2=prepayment2 ... )
PREPAYMENTS=( period1=prepayment1 period2=prepayment2 ... )
PREP=

specifies either a uniform prepayment p throughout the life of the loan or lump sum prepayments. A uniform prepayment p is assumed to be paid with each periodic payment. Specify lump sum prepayments by pairs of periods (or dates) and respective prepayment amounts.

You can specify the prepayment periods as dates if you specify the START= option. Prepayment periods or dates and the respective prepayment amounts must be in time sequence. The prepayments are treated as principal payments, and the outstanding principal balance is adjusted accordingly. In the adjustable rate and buydown rate loans, if there is a rate adjustment after prepayments, the adjusted periodic payment is calculated based on the outstanding principal balance. The prepayments do not result in periodic payment amount adjustments in fixed rate and balloon payment loans.

PRICE=amount
PRC=amount

specifies the purchase price, which is the loan amount plus the down payment. If you specify the PRICE= option along with the loan amount (AMOUNT= option) or the down payment (DOWNPAYMENT= option), the value of the other one is calculated.

If you specify the PRICE= option with the AMOUNTPCT= or DOWNPAYPCT= options, the loan amount and the downpayment are calculated.

ROUND=n
ROUND=NONE

specifies the number of decimal places to which the monetary amounts are rounded for the loan. Valid values for n are integers from 0 to 6. If you specify ROUND=NONE, the values are not rounded off internally, but the printed output is rounded off to two decimal places. The default is ROUND=2.

START=SAS-date-literal
START=yyyy:period
S=

gives the date of loan initialization. The first payment is assumed to be one payment interval after the start date. For example, you can specify the START= option as `START=’1APR2010’D` or as `START=2010:3`, where 3 is the third payment interval within the year 2010. If INTERVAL=QUARTER, 3 refers to the third quarter. If you specify the START= option, all output for the particular loan is dated accordingly.

#### Output Options

NOSUMMARYPRINT
NOSUMPR

suppresses the printing of the loan summary report. The NOSUMMARYPRINT option is usually used when an OUTSUM= data set is created to store loan summary information.

NOPRINT
NOP

suppresses all printed output for the loan.

OUT=SAS-data-set

writes the loan amortization schedule to an output data set.

OUTSUM=SAS-data-set

writes the loan summary for the individual loan to an output data set.

SCHEDULE
SCHEDULE=nyears
SCHEDULE=YEARLY
SCHED

prints the amortization schedule for the loan. SCHEDULE=nyears specifies the number of years the printed amortization table covers. If you omit the number of years or specify a period longer than the loan life, the schedule is printed for the full term of the loan. SCHEDULE=YEARLY prints yearly summary information in the amortization schedule rather than the full amortization schedule. SCHEDULE=YEARLY is useful for long-term loans.