The LOAN Procedure
The LOAN procedure provides analysis and comparison of mortgages and other installment loans. It enables you to
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input contract terms for any number of different loans and analyze and compare various financing alternatives
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analyze four different types of loan contracts
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fixed rate
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adjustable rate
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buydown rate
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balloon payment
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control adjustment terms for adjustable rate loans: life caps, adjustment frequency, and maximum and minimum rates
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calculate loans that can incorporate initialization costs, discount points, down payments, and prepayments (uniform or lump-sum)
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analyze different rate adjustment scenarios for variable rate loans
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worst case
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best case
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fixed rate case
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estimated case
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compare loans at different points in time
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compare loans (at each analysis date) on the basis of five different economic criteria
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present worth of cost (net present value of all payments to date)
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true interest rate (internal rate of return to date)
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current periodic payment
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total interest paid to date
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outstanding balance
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compare loans for before-tax or after-tax analysis
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report best alternative for comparison of equal-amount loans
In addition, PROC LOAN provides amortization schedules and loan summaries for each loan contract. It automatically generates payment dates (rather than just payment sequence numbers) and rounds payments to any number of decimal places. It supports a wide variety of payment and compounding intervals.
The MORTGAGE procedure provides amortization schedules for fixed rate mortgages. Although the MORTGAGE procedure has been superseded by the LOAN procedure, it is still supported for compatibility with previous releases of SAS/ETS software.
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