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