Any source addresses packets that match acl 1 will be converted Lo0 IP address leaving the router is that what you want ? as that's what will happen using the loopback as the overload , is your loopback configured as a public ip ? if not use the E interfaces
see this doc for examples of how to use overload in diff scenarios
http://myhowtosandprojects.blogspot.com/2015/06/cisco-nat-overload-on-loopback-exit.html