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About First Internet Bank
First Internet Bank (NMLS #424182) is an online-based financial institution that offers a variety of loan programs to fit borrowers’ needs. You can get a fixed or adjustable rate, and it has more loan types than many lenders offer. Options include conforming conventional loans, jumbo loans, FHA loans, VA loans, construction loans and home equity loans. You can apply on its website.
Pros & Cons
- Online application process
- Available in all 50 states
- Offers a wide variety of loan products
- Loan officers are available via phone and chat
- Requires a 620 credit score for FHA and VA loans
- No in-person branches
First Internet Bank is a full-service online bank with home financing products for many different needs. If you prefer a digital-first experience, it may be a good option. However, its lending requirements are stricter than average, and you’ll need to apply for preapproval to see rate options for some of its offerings.
My situation was somewhat unique in that I was looking to buy-out my siblings for a house we had all inherited. … Rick ** and his team were not intimidated, they met every challen...Read full review
He was very quick to respond/reply to all our calls, emails and texts and answered every question and concern with knowledgeable, detailed informed answers. He and the underwritin...Read full review
First Internet Bank offers loans with fixed and adjustable rates. It’s often up to you whether you want a fixed-rate mortgage with predictable monthly payments or an adjustable-rate mortgage (ARM) with payments that could rise or fall with market conditions.
A fixed rate may be better for borrowers who plan to live in their homes for several years and whose financial situation isn't likely to change all that much.
However, because the intro rates on ARMs are often lower than fixed rates, an adjustable rate could help a borrower secure a better rate initially. This makes them a good option for homeowners who have plans to sell their homes in a few years and need a short-term lending option.
In 2021, First Internet Bank had a slightly lower average rate than the national average. However, in 2020, the company had slightly above-average rates.
First Internet Bank average home purchase rate vs. national average
|Year||Difference from national average|
First Internet Bank has an instant quote tool on its website that you can use to check what rates you qualify for given your financial situation. This tool includes estimates of your interest rate, annual percentage rate (APR), principal and interest payments and closing costs.
To actually get a mortgage with First Internet Bank, you can begin the preapproval process on the company’s website by creating an account and initiating your loan application. Be prepared to answer questions about your financial situation. You’ll need to provide information like your account balances and annual income.
Having the required documentation handy before you begin your application should be helpful. The company requires two years of W-2s and the previous month’s pay stub (or year-to-date financial statements if you’re self-employed). You may also need to submit other financial documentation, though.
Once you submit an application, the company will connect you with a loan officer to gather additional information and help you decide between different loan options.
Marius, a ConsumerAffairs reviewer from Massachusetts, had this to say about getting a mortgage with First Internet Bank:
“First Internet Bank provided a very good rate and a smooth experience for our first mortgage. After seeing the rate on their website, I called and spoke with loan officer Grant **, who confirmed the rate and was quick in providing us a full loan estimate. Throughout our communication he was professional, courteous, and extremely prompt, usually replying within five minutes.”
After your application and the underwriting process are complete, you could receive a preapproval decision immediately. Your loan officer will continue to assist you through the closing process.
First Internet Bank application features
|Mobile document upload|
|Publishes minimum rate on website|
|Rate lock||60 days|
|Pre-qualification (no hard credit pull)||X|
|Certified approval letter|
First Internet Bank’s mortgage options include conforming conventional loans, jumbo loans (for nonconforming loan limits), FHA loans and VA loans. The company does not currently offer USDA loans.
First Internet Bank also offers construction loans for borrowers who plan to build new homes. However, this type of loan is only available to borrowers in Central Indiana.
In 2021, First Internet Bank saw 1,202 home purchase applications. About 61% of applications (737) made it to closing, and about 6.5% (78) were denied.
Loan applications for home purchases only by year
|Home purchase applications||1,202||783||1,246|
|Home purchase loans closed||737||562||778|
|Home purchase applications denied||78||25||73|
|Home purchase preapprovals denied||20||3||25|
You can refinance your existing mortgage with First Internet Bank, whether you’re looking to lower your monthly payment or get cash out. In 2021, the majority of loans the company originated were for refinances (about 69% were either rate-and-term or cash-out refinances). The remaining portion of loans was for home purchase (about 30%).
Borrowers choose to refinance for a number of reasons, but many took action in 2020 and 2021 when rates were very low. If you refinance your mortgage to a lower rate, you not only save on monthly payments, but you can likely reduce the total amount of interest you pay over the loan term.
According to data from Freddie Mac, borrowers who refinanced in the first six months of 2021 lowered their rates by more than 1.2% on average, resulting in an average annual savings of over $2,800.
Fewer borrowers are expected to refinance in 2022 because rates have been steadily rising. The federal funds rate, which influences mortgage rates, increased from 0.08% in June 2020 to 1.68% in July 2022, according to data from the Federal Reserve Bank of St. Louis.
However, you may still decide to refinance when rates are high if you can secure a lower rate than you currently have. For example, your credit score may be significantly higher now than when you first obtained your mortgage, which could help you qualify for a lower rate despite the economy.
Just be sure to consider all the costs associated with refinancing and compare them with the potential interest savings over time before making a decision.
Home purchase vs. refinance loans by year
|Home purchase loans||29.79%||19.27%||36.59%|
HELOC and home equity loans
First Internet Bank offers both home equity lines of credit (HELOCs) and home equity loans. However, it doesn’t publish much information about these products, so you’ll want to check with the company directly for more details.
HELOCs offer an open credit line to draw from over a few years, so a HELOC can be helpful if you anticipate future expenses that are somewhat unpredictable. Just know that HELOCs generally carry adjustable interest rates, which means your monthly payments could vary over time.
A home equity loan may be a better option if you plan to fund something with a lump-sum payment (such as putting a new roof on your house). With this type of loan, you’ll receive cash upfront and begin making payments on the loan immediately. Home equity loans generally also have fixed interest rates, which may be desirable if you don’t want your monthly payment to change.
First Internet Bank requires a 620 credit score for both conventional loans and government-backed mortgages (like FHA and VA loans). This credit score requirement is higher than the industry standard for government-backed loans (usually 500 for FHA loans and 580 for VA loans).
However, its down payment requirements are in line with most other lender requirements. You’ll need to offer at least 3% down on a conventional loan and at least 3.5% for an FHA loan. VA loans generally have no down payment requirements.
First Internet Bank mortgage requirements by type
Costs and fees
If you use the instant rate quote tool on First Internet Bank’s website, you can get an estimate of your closing costs; however, the quoted amount only includes lender fees, so you’ll still need to account for other closing costs.
Other closing costs (usually called third-party fees) may include appraisal fees, mortgage insurance (if you plan to offer less than a 20% down payment) and title fees. Total closing costs generally add up to 2% to 5% of the loan amount.
To help you plan for these expenses, you’ll receive a Loan Estimate after you apply for a mortgage. This document outlines all of your closing costs and the approximate total for each expense. Three days before the actual closing, you’ll also receive a Closing Disclosure that finalizes the closing costs you'll pay.
What is First Internet Bank?
First Internet Bank is a full-service bank. The company offers a wide variety of options for buying, building and refinancing your home. Its home loans include:
- Conventional (conforming) loans
- Jumbo (nonconforming) loans
- FHA loans
- VA loans
- Construction-to-permanent loans
- Home equity loans
- Home equity lines of credit (HELOCs)
First Internet’s website also offers mortgage preapprovals and a loan portal for managing your home loan(s).
Is First Internet Bank legit?
First Internet is an FDIC-insured online bank that had provided $3 billion in loans as of June 2021. The company is headquartered in Fishers, Indiana.
At the time of publishing, there are no recorded regulatory actions against the company in the NMLS database.
Where is First Internet Bank available?
First Internet Bank is licensed to do business in all 50 states as well as U.S. territories. It has no physical branches, though.
A link has directed you to this review. Its location on this page may change next time you visit.
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Reviewed Jan. 24, 2023
Arthur was amazing throughout the house buying process. He provided incredible detail each step of the way and reassurance for each unknown in the current market. Arthur and his team are the best and we would recommend them to anyone!
With how stressful life can be in these times, we try to make your experience as trouble-free and easy as possible. Thanks for sharing, Nathan!
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Reviewed Jan. 13, 2023
Building an ADU and needed a fixed rate second. Brian **, our loan officer, did an EXCELLENT job leading us through the process of getting a second. The easiest loan experience we have ever had. No last minute requests for anything and he was calling even on the last day to make sure everything was going okay. Would absolutely recommend Brian ** and First Internet.
A smooth loan process with great rates, along with excellent customer service? You just can’t beat it! Thanks for the recommendation, Suzanne. We appreciate the review, and look forward to working with you again!
Reviewed Dec. 12, 2022
Arthur **'s team at First Internet Bank truly care about their customers. They exceeded every expectation I had by always being there to make sure all my questions were answered. The team was very responsive and caring as well as having the best rates in the area.
You got it! Exceptional customer service and great rates are two of the many benefits of coming to us for your mortgage. We appreciate the recommendation, Jorge!
Reviewed Dec. 8, 2022
Mark made everything seamless with efficient communication and meaningful conversations. Made the first time home buying experience a breeze. Thank you again Mark for being very personable and knowledgeable in what you do! Will be recommending anyone that needs to buy a home to First Internet Bank.
That’s right, Carson! Buying a home can be difficult – we get it. That’s why our team makes sure you’re comfortable with the mortgage process. Congrats on your new home!
Reviewed Nov. 16, 2022
My experience with Arthur and his team could not have gone better. They are professional, accessible, and helpful. Honesty is very important for this process and they dealt with all issues with the utmost integrity. Thank you so much for everything.
That’s right, John. Our team truly cares about your loan experience and wants you to be comfortable with the process by answering any questions or concerns you may have. We appreciate you, and your business!
Reviewed Nov. 6, 2022
Joey was above and beyond helpful with the whole contract. Always nice and very pleasant. I'd get very excited about things and just his being so pleasant and very punctual would calm me down. I bought my mom's house and was buying my sisters out which was very nervewracking in itself and his being on top of the whole process was calming. I couldn't have had a better person to go through this with. I am thankful.
Hi Lisa, we love it when we exceed your expectations in every way. Thanks for sharing!
Reviewed Nov. 5, 2022
Just completed my third loan with First IB! The team is attentive, expedient, trustworthy, personable, knowledgeable. It was an straightforward and easy process. I found out about First IB through a well-respected and well-known financial blogger and would recommend First IB without hesitation.
Sounds like you had a great experience with us, Marisa! We appreciate the 5-star review and thanks for choosing First Internet Bank a third time!
Reviewed Nov. 4, 2022
First Internet Bank was easy to work with and explained things very well. The whole process of buying a home is confusing and intimidating but they helped ease the tension. The online portal also makes it very easy to provide all documents needed.
That’s right, Andrew! Buying a home can be difficult – we get it. That’s why our team makes sure you’re comfortable with the mortgage process. Congrats on your new home!
Reviewed Oct. 16, 2022
I worked with this company to finance my first house. Ashley was very knowledgeable and helped make sure my loan was comfortable for me. Ashley explained my loan options to me. This was a great experience to work with this company. If you are need of a finance for a house please work with First Internet Bank!!
That’s right, London! Buying a home can be difficult – we get it. That’s why our team makes sure you’re comfortable with the mortgage process. We’re glad our team was able to help make your mortgage experience a 5-star one and congrats on your new home!
Reviewed Sept. 29, 2022
All of my requests were met with pleasant urgency and patient explanation of details and context. For such an attractive loan product, the process was incredibly smooth and painless. The interest rate was very competitive and avoiding PMI was great financially, as well as avoiding disappointing complications that can kill an otherwise great deal.
We’re glad our team was able to provide a smooth mortgage process AND fast, reliable customer service. Thanks for choosing us, Jamey!
First Internet Bank Company Information
- Company Name:
- First Internet Bank
- Company Type:
- Ticker Symbol:
- Year Founded:
- 8701 E 116th Street
- Postal Code:
- United States