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First Internet Bank mortgage review

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finder.com’s rating: 3.7 / 5.0

★★★★★

A variety of mortgage types from the first FDIC-insured online bank.

First Internet Bank offers purchase and refinance mortgages that you can apply for online. But you’ll need to talk to a loan officer to finalize your deal.

Details

Loan types Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA
Minimum credit 620
Minimum down payment 3.5%
Origination fee N/A
Other fees First Internet Bank acknowledges a variety of closing fees associated with its loans, including appraisal fees, title charges, closing fees and state taxes. However, it doesn’t disclose the figures that lurk behind these fees, nor does it include fee estimates in its online mortgage interest rate calculator.

If you choose to pursue a home loan with First Internet Bank, ask your loan consultant for the specific fees associated with your pending loan, and keep an eye out for additional fees in your loan documentation.

Pros

  • Online application.
  • Variety of loan options.
  • Online account access.
  • No prepayment penalties.

Cons

  • Hard credit pulls.
Overall, reviews for First Internet Bank are positive. Customers speak highly of the courteous, responsive service they receive from their loan consultants and prompt processing times during the application process. While there are only a couple of reviews on Trustpilot, the lender gets 4.9/5 stars on LendingTree with 142 reviewers as of August 2019.

Negative reviews focus mostly on customers who say that the initial interest rates offered on their home loans weren't honored after their home appraisals were completed. While First Internet Bank doesn't guarantee the APRs advertised while applying, some borrowers say they felt misled by the bank's rate lock-in agreement.

First Internet Bank is accredited by the Better Business Bureau, which awards it an A+ rating.

What types of loans does First Internet Bank offer?

First Internet Bank offers a host of different mortgage types, including:

Conventional

Conventional fixed-rate mortgages are one of the most common loan types, with an interest rate that stays the same for the life of the loan.

First Internet Bank also offers adjustable-rate mortgages, which tend to have a lower interest rate for the first few years. After the initial period is up, the interest rate can rise and fluctuate for the life of the loan.

Jumbo

Jumbo loans are designed for mortgages too big to be bought out by government lenders Fannie Mae and Freddie Mac. As of 2020, the limit for non-jumbo conforming loans is $510,400.

Refinance

If you’re unhappy with your current mortgage, you think you’ll be eligible for a lower interest rate now or you just want to change the length of your loan term, First Internet Bank can help you refinance to a new mortgage.

FHA

FHA loans are backed by the Federal Housing Association but offered through private lenders. They’re available with as little as 3.5% down and are designed for low- to moderate-income homebuyers. But you’ll need to fall below a certain income threshold, calculated based on your household size, to qualify.

VA

Available to military service members, veterans and certain military spouses, a VA loan is available with 0% down.

Home equity

First Internet Bank offers both home equity loans, which let you borrow a lump sum against the value of your home, and home equity lines of credit, which allow you to draw funds as needed.

First Internet Bank fees

First Internet Bank acknowledges a variety of closing fees associated with its loans, including appraisal fees, title charges, closing fees and state taxes. However, it doesn’t disclose exactly how much these fees cost until you apply. As a general rule, closing costs on a house tend to range from 2% to 5% of the home’s total cost.

If you choose to pursue a home loan with First Internet Bank, ask your loan consultant for the specific fees associated with your pending loan, and keep an eye out for additional fees in your loan documentation.

Requirements

To qualify for a home loan, you’ll need a credit score of at least 620 — and some loan types may require a higher credit score. You’ll also need a minimum down payment of 5% if you’re taking out a conventional mortgage, and a maximum debt-to-income ratio of 50%.

Documentation

Be prepared to provide:

  • Your full name and personal contact information
  • Your Social Security number
  • List of your assets, including savings, real estate, car titles and other investment records
  • Complete list of your debts, including student loans, auto loans, personal loans and credit cards
  • Recent paycheck stubs
  • Your most recent federal tax return

Pros and cons of First Internet Bank mortgages

Pros

  • Excellent customer service. Reviews online mention First Internet Bank’s great customer service. And when I contacted the company, I had a person on the phone in under 40 seconds, with no automated routing system.
  • Online account. Monitor your payments and mortgage information simply and easily from your computer or mobile device.
  • No prepayment penalties. None of First Internet Bank’s loan programs charge prepayment fees, which means you can save unnecessary interest by paying off your mortgage early without penalty.

Cons

  • Two-step application. While a majority of the home loan application takes place online, you’ll need to follow up with your assigned loan officer to complete the process.

Compare to other lenders

Name Product Loans offered State availability Min. credit score
Axos Bank
Conventional, Refinance, Jumbo, Home Equity, Fixed, Adjustable, FHA, VA, USDA
Available in all states
620
Explore a full suite of home loan options with this direct online lender.
Morty
Morty
Conventional
AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MS, MT, NC, NE, NJ, NM, OH, OK, OR, PA, SC, TN, VA, WA, WI, WV
680
Requires minimum credit score of 680 for conventional loans above $100,000 only. Not currently offering FHA, VA, USDA, Jumbo, or certain types of refinancing. A short online form presents you with multiple loan options and terms to choose from. Not available in every state: make sure you live in a qualifying state before applying.
Rocket Mortgage
Conventional, Refinance, Jumbo, FHA, VA, USDA
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
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Compare up to 4 providers

How to get a home loan with First Internet Bank

To get started:

What is First Internet Bank?

In 1999, First Internet Bank became one of the first FDIC-insured banks to operate without any physical branches. True to its name, First Internet Bank is an online-bank that conducts its business entirely online.

It offers checking and savings accounts, CDs, IRAs, credit cards, personal loans and home loans.

First Internet Bank is accredited with the BBB with an A+ rating and is highly reviewed online. As of August 2019, it gets 4.9/5 stars from 142 reviewers on LendingTree and 4.8/5 stars from 87 reviewers on ConsumerAffairs.

Frequently asked questions

Home loans ratings

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★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top home loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, product selection and borrower experience.

Read the full methodology of how we rate home loan providers.

Expert review

Shannon Terrell

Review by


Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.

Expert review

First Internet Bank automates and streamlines the application process with a fully-online experience before meeting with a loan officer. Without the overhead costs of traditional providers, First Internet Bank strives for competitive rates and quick, efficient service. But you won’t get the best rates out there and there are no brick-and-mortar locations.

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