Loan Analysis, Comparison, and Amortization
The LOAN procedure provides analysis and comparison
of mortgages and other installment loans.
The LOAN procedure includes the following features:
- contract terms for any number of different loans may be input
and various financing alternatives may be analyzed and compared
- analysis of four different types of loan contracts including
- fixed rate
- adjustable rate
- buydown 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
- loan calculations can incorporate initialization costs,
discount points, down payments, and prepayments (uniform or lump-sum)
- analysis of different rate adjustment scenarios for variable rate loans including
- worst case
- best case
- fixed rate case
- estimated case
- can make loan comparisons at different points in time
- can 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
- can base loan comparisons on
either after-tax or before-tax analysis
- reports best alternative when loans of equal amount are compared
- amortization schedules for each loan contract
- when starting date is specified, output shows
payment dates rather than just payment sequence numbers
- can optionally print or output to SAS data sets the amortization schedules,
loan summaries, and loan comparison information
- can specify rounding of payments to any number of decimal places
The MORTGAGE procedure
provides amortization schedules for fixed rate mortgages.
The MORTGAGE procedure has been superseded by the LOAN procedure
but is supported for compatibility with previous releases
of SAS/ETS software.
The MORTGAGE procedure includes the following features:
- fixed rate mortgage calculations and amortization schedules
- loan amount, payment, interest rate, or length of loan
computed given the other three items
- supports a wide variety of payment and compounding intervals
- payment schedule with principal and interest division and
ending balance printed or output to a data set
Copyright © 1999 by SAS Institute Inc., Cary, NC, USA. All rights reserved.
