Loan types – Mortgages, Refinancing, Home Equity Loans
Loan amount – Varies
Repayment Terms – 10, 15, 20, 25, and 30 years for fixed-rate; 5-year adjustable jumbo loan
Top Pro - Easy-to-access online banking solution
Top Con – Could offer larger variety of loan terms
Best for - Customers looking for a fast and mobile solution to financing a new home purchase
First Internet Bank was founded in 1999 with the goal of providing a fully online and high-tech experience for customers. With its decentralized model and online presence, the company delivers banking solutions to customers across the United States. Based out of Indiana, First Internet Bank offers online retail banking services, as well as securities investment solutions. Customers can open checking accounts, as well as apply for credit and debit cards. Additionally, First Internet Bank offers lending services, providing personal loans, lines of credit, balance transfers, and mortgages to customers.
First Internet Bank’s online platform provides an excellent alternative for customers looking to avoid the hassle of traditional banking institutions. The company’s mortgages are designed to help first -time homebuyers by accommodating a strong variety of options while still offering competitive rates. Moreover, their straightforward application and approval process make getting a mortgage through First Internet Bank a simple solution for customers who are unfamiliar with the process of applying for a mortgage or a refinancing loan. Borrowers can also take advantage of the company’s other outstanding banking services as well, which include checking accounts and some investment services. Overall, First Internet Bank is an excellent alternative for customers looking for a full-service bank that can help them purchase a new home.
We are impressed by First Internet Bank’s versatility and efficiency when it comes to providing mortgages and refinancing loans. The company offers several key advantages that make them an ideal choice for many customers. The fully-online service allows customers to access their financial details, from payment history to total outstanding debt, directly from their computers. Account details are even accessible via mobile applications available both for iOS and Android devices. In addition, the company’s loan terms are industry standard, giving customers a great selection of mortgage solutions. Apart from standard loans, First Internet Bank also offers access to several federally-backed loan programs, including FHA and VA loans.
First Internet Bank stands out for its jumbo loans, which provide funding beyond the ceiling for traditional fixed-rate mortgages. Plus, it hosts alternative financing options such as home equity loans for customers looking to fund projects including home renovations or expansion.
Highlights from our First Internet Bank review:
One of the areas where First Internet Bank’s online presence pays major dividends is in the application and approval process for mortgage and refinancing loans. Considering the company’s services are mostly internet based, it’s easy for customers to complete their entire application and submit for pre-approval or approval from the comfort of their own homes.
To get started, customers must first be registered account holders with First Internet Bank, a process that takes a few minutes online. Once completed, customers can begin applying for their mortgage, by entering basic contact information to complement the financial details provided at the account opening. During the initial mortgage application, customers can choose to opt for pre-approval, which offers greater flexibility when searching for new homes. To approve customers for loans and set their interest rates, First Internet Bank compares their financial information with statistical data from millions of other homeowners. In most cases, a W2 tax form or recent pay stubs are sufficient to verify income levels, and a single bank statement can be used to confirm available assets necessary to close on a loan. Once the initial application is accepted, customers can find their home, agree on a price, and close the deal easily.
Although First Internet Bank does not offer the physical presence of many competitors, it does offer the same quality and variety of mortgage services. Alongside the simple application process, customers can choose from a variety of loan alternatives and terms that give them the flexibility to afford a home and repay it without harming their personal finances.
Traditional fixed rate loans with terms of 10, 15, 20, 25 or 30 years are available. These are the most popular options offered by First Internet Bank and tend to offer lower APRs and interest rates, with current representative APRs for a 15-year mortgage starting as low as 3.231%. First Internet Bank also provides a 5-year adjustable rate option, although these are exclusively geared towards the company’s jumbo loans – those mortgages for higher amounts than the standard amount ceiling – with APRs starting as low as 3.748%.
Apart from these choices, First Internet Bank offers several federally-backed loan options that can help customers that are seeking lower down payments. The company provides Federal Housing Administration Loans, which require home equity as low as 3.50%. These mortgages offer slightly higher APR rates, with representative rates starting as low as 4.511%. Additionally, customers who are armed forces veterans and would prefer a no-down-payment option can apply for a VA loan, which comes attached with representative rates starting as low as 4.044%.
For existing borrowers looking to refinance their homes, First Internet Bank supplies two main alternatives: standard refinancing, and HARP refinancing for customers whose home value has declined over time. First Internet Bank even offers home equity loans for customers looking for funds for major purchases, home renovations and expansions, or other major spending needs.
First Internet Bank offers a certain level of flexibility for mortgage repayments. The company only lends to borrowers who are also account holders, which makes both repayment and the whole application process easier. Customers can choose from a variety of loan terms on their mortgages, both fixed and adjustable rates, as well as locate competitive interest rates. The company’s 30-year fixed rate mortgages, its most popular financing option, offers interest rates that start at 3.875%, with APRs of 3.936%. Adjustable rates, which are exclusively for larger loan amounts, have interest rates starting as low as 3.125%. Overall, the company’s flexibility and versatile repayment options make it a powerful choice for borrowers with a range of different needs.
As an online-only company, First Internet Bank takes several precautions to protect customer information and financial data. All sessions are encrypted using Secure Sockets Layer protocol. The company utilizes additional encryption technology to protect information that is transmitted to its data servers. Information is protected by a variety of physical protections, as well as electronic fail-safes that ensure constant uptime and protect against malicious attacks. The company does collect some information from customers, but adheres to high standards of transparency and privacy.
Customers can reach First Internet Bank via a toll-free number or an email ticket from the website. The toll-free line is available from Monday through Friday between 8am and 5pm ET. From our experience, company representatives answered our questions promptly and satisfactorily. We received responses to our emails in as little as 1 business day and answers were usually on point. Customers who need a quicker response can start a live chat with one of the company’s relationship bankers, who are available between 7am and 9pm Monday to Friday, and 9am and 3pm on Saturdays. Furthermore, First Internet Bank hosts an insightful FAQ page along with other informational sources designed to help educate potential borrowers.
While satisfied with First Internet Bank’s overall service, we did find some areas where the company could improve its offerings:
Still, there are several key features that stand out:
As a pioneer of online-first banking, First Internet Bank has created a versatile and efficient mortgage borrowing alternative. The company’s services are mobile, fast, and straightforward. We were impressed with the overall versatility and variety offered when it comes to repayment terms, loan alternatives, and refinancing. Overall, we found that this is an ideal borrowing solution for home buyers who are seeking a no-frills mortgage.
First Internet Bank
11201 USA Parkway