Investment Property Mortgages

With two investment property mortgage options and the guidance you get from an ESL mortgage originator, you can feel confident you’ll have the right financing in place.

Investment Property 15 Year Fixed Rate Mortgage

• Rate remains fixed so your mortgage payments remain the same throughout the life of the loan.
• No prepayment penalties.
• Available for purchase or refinance.
• Minimum down payment based on sales price or appraised value required.

Investment Property Balloon Mortgage

• Available with a 10 or 15 year fixed rate period and is amortized over 30 years so payment amounts are less.
• At the end of the loan term, the remaining balance (a.k.a. the balloon) comes due. To satisfy the terms of the loan, you can pay off the balance, refinance, or sell the property at the end of the fixed rate period.
• No prepayment penalties.
• Available for purchase or refinance.
• Minimum down payment based on sales price or appraised value required.

ESL offers Commercial Mortgages, too. So we can help with properties with five or more units or real estate investments for your business.

Eligible Properties

Non-owner occupied 1-4 unit residence, condominiums, modular homes, and Planned Unit Developments (PUDs).

Ineligible Properties

Manufactured homes; cooperative housing (Co-ops); property used for agriculture, farming, or commercial enterprise; vacant land; and multi-family with five or more units.

Lending Area

Investment Property 15 Year Fixed Mortgages

Property must be located in Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Steuben, Wayne, Wyoming, and Yates Counties in the state of New York.

Investment Property Balloon Mortgages

Property must be located in Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Steuben, Wayne, Wyoming, and Yates Counties in the state of New York.

Loan Limits

Maximum of six financed properties inclusive of subject property and primary residence.

Down Payment

Funds for down payment in the form of a gift or gift of equity or grant are not permitted.

Mortgage Insurance

Mortgage insurance is required for Investment Property Fixed Rate Mortgages if the Loan-to-Value Ratio (LTV) is over 80%. It is not required for Investment Property Balloon Mortgages.

Payment Due Date

Payment due date will be determined when the loan is disbursed.

Payment Options

ESL has a variety of loan payment options that make it easy for you to pay your ESL loans from your phone, tablet, or PC. Our loan payment option comparison chart will help you decide which option is most convenient for you. Still have questions? Connect with an ESL representative so we can help.

No Prepayment Penalties

Rate Locks

The interest rate may float from time of application to a few business days prior to closing. Anytime during this float time period, the interest rate may be locked. Investment mortgage rates are quoted based on a 45- 60 day rate lock.

Discount Points

Points may be paid to reduce the interest rate. See rates for Discount Points.

Premium Points

Premium points are used to lower out-of-pocket closing cost expenses. They are a credit toward closing costs in exchange for a slightly higher rate on a purchase or refinance.

For rate information, call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today. Or fill out this contact us form to have a member of our Mortgage Team reach out to you.

Understanding ESL Mortgage Closing Costs and Fees

Here’s something important to remember when you’re shopping for a mortgage:

We carefully manage and control the mortgage process from start to finish. Our goal? We want to minimize the costs our members pay. That’s one of the reasons why our closing costs are among the lowest in our area.

We also make sure that our entire approach to closing costs is straightforward and easy to understand. That’s why you’ll know exactly what’s due prior to closing. And you won’t have any unexpected, last-minute expenses that may delay the closing process.

A Quick Reference Guide to Closing Costs

At ESL, we realize that buying a home can be a complex and confusing process for many home buyers. That’s why we want to make sure you understand all of the specific costs involved in your closing.

Here’s a quick recap of these common closing costs:

• Origination charges cover our fees for processing your mortgage application, including your application and underwriting fees, the costs involved in document preparation, and the settlement and attorney costs.
• Discount points are paid voluntarily in exchange for a lower interest rate. They are calculated as a percentage of your loan amount and usually paid at closing.
• Mortgage Insurance will be required on loans with over 80% LTV to protect the lender in the event of default of the borrower.
• Other expenses for third-party services obtained on your behalf. These expenses include the costs for your title insurance and fees for appraisals and credit reports.
• Taxes and other government fees cover your state and county mortgage taxes and the recording fees paid to the county clerk.
• Prepaid items include property taxes, homeowners insurance, and prepaid interest. They may also include mortgage insurance.

Estimate Your Closing Costs

To make a sound financial decision about a mortgage, it helps to estimate your closing costs in advance. And while our Mortgage Closing Calculator is a great tool to estimate closing costs for an owner-occupied closing, it should not be used for estimating closing costs for an investment property purchase or refinance. Call 585.336.1502 or 800.352.6669 x1502, to contact a member from our Mortgage Team for assistance in understanding what costs would be included with an investment property mortgage closing.

Post-Closing: Potential for Late Fees

At ESL, there’s only one fee that may be assessed after your closing. And that only happens if your mortgage payments are late. If we do not receive the full monthly payment 15 calendar days after the scheduled due date, you’ll have to pay a late fee that is 2.0% of the total overdue payment of interest and principal.

Please remember, however, that there are easy ways to avoid late fees. Just make sure your mortgage payments are made on time every month. View Loan Payment Options.

Now that you are familiar with your investment property mortgage options, you are ready to take the next steps! Review our Steps to Get an ESL Mortgage for information about what to expect and then contact us to get started.

Call 585.336.1502 or 800.352.6669, x1502, to speak with a helpful member of our Mortgage Team today. Or fill out this contact us form to have a member of our Mortgage Team reach out to you.