PROC LOAN supports four types of loans. You specify
each type of loan using the corresponding statement:
FIXED, BALLOON, ARM, and BUYDOWN.
FIXED - Fixed rate loans have a constant interest rate and periodic payment
throughout the life of the loan.
- BALLOON - Balloon payment loans are fixed rate
loans with lump sum payments in certain payment periods in addition
to the constant periodic payment.
- ARM - Adjustable rate loans are those in which the interest rate
and periodic payment vary over the life of the loan.
The future interest rates of an adjustable rate loan
are not known with certainty, but they will vary within specified limits
according to terms stated in the loan agreement. In practice, the rate
adjustment terms vary. PROC LOAN offers a flexible set of options to
capture a wide variety of rate adjustment terms.
- BUYDOWN - Buydown rate loans are similar to adjustable rate loans, but the
interest rate adjustments are predetermined at the initialization of
the loan, usually by paying interest points at the time of loan
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