First Internet Bank
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First Internet Bank

 5.0/5 (39 ratings)
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First Internet Bank
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Written by Jennifer Schurman
Edited by Sally Jones

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.

Overall Satisfaction Rating

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Pros

  • Online application process
  • Available in all 50 states
  • Offers a wide variety of loan products
  • Loan officers are available via phone and chat

Cons

  • Requires a 620 credit score for FHA and VA loans
  • No in-person branches

Bottom Line

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.

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Rated with 5 stars
Verified

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...

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Rated with 5 stars
Verified

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

Rates

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

YearDifference from national average
2021-0.02%
2020+0.17%
2019-0.08%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Application process

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

FeaturesAvailability
Online application
Mobile document upload
Physical branchesX
Publishes minimum rate on website
Rate lock60 days
Pre-qualification (no hard credit pull)X
Certified approval letter

Loan types

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

202120202019
Home purchase applications1,2027831,246
Home purchase loans closed737562778
Home purchase applications denied782573
Home purchase preapprovals denied20325
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

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

202120202019
Home purchase loans29.79%19.27%36.59%
Refinance loans51.82%68.04%48.45%
Cash-out refinance16.94%12.14%13.31%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

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.

Requirements

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

Min. credit scoreMin. down paymentCompare with other lenders
Conventional6203%Mortgage lenders
FHA6203.5%FHA lenders
VA6200%VA lenders

Read our guide to USDA loans for more information on these loans.

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.

FAQ

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.

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How do I know I can trust these reviews about First Internet Bank?
How do I know I can trust these reviews about First Internet Bank?
  • 4,009,135 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

For more information about reviews on ConsumerAffairs.com please visit our FAQ.

Page 1 Reviews 0 - 5
Rated with 5 stars
Verified Reviewer Verified Buyer
Original review: Aug. 1, 2022

From Day 1 of working with Greg ** was THE BEST. I COULD NOT WAIT TO SHARE MY EXPERIENCE!!! This is indeed a real person/real review. I initially started my mortgage process with other banks, but they didn't work out. Credit Karma recommended First Internet Bank-of whom have made my dream come true. Greg ** and Katie ** are both a true blessing! The Confidence, Knowledge, being Attentive to all my questions/concerns made it all less stressful. Have faith and patience and what you ask for will be your reality. Thank you sooo much!

First Internet Bank response

Hi Karuma. We’re glad our team was able to give you such a great mortgage experience and hope to be able to work with you again in the future!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: June 16, 2022

    My situation was somewhat unique in that I was looking to buy-out my siblings for a house we had all inherited. The attorney representing the estate and holding the asset was cantankerous and unhelpful, and my siblings were scattered across the country. Another mortgage company I had started with balked at the deal and abandoned me. Rick ** and his team were not intimidated, they met every challenge and managed to get the loan closed in time for me to leave for an important business trip to Australia. They have my full confidence and kept me well informed every step of the way.

    First Internet Bank response

    Hi David, we’re glad you had a great experience with us and hope to work with you again whenever you need us!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: June 3, 2022

    Best refi experience ever!! The loan officer we had "Brian **" was the best we were able to stay in communication with him for all our needs from start to finish. We didn't have to constantly talk to someone new or 20 different people. 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 underwriting team at First Internet Bank got us the best rate and deal that saved us a lot of money with very low fees. We are so thankful for Brian and everyone at First Internet Bank. I highly recommend them to everyone!!

    First Internet Bank response

    Top-notch communication is one of the many benefits of working with us on your mortgage loan. We’re glad to have been able to make your experience a 5-star one. Thanks Barbara!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: May 29, 2022

    First Internet Bank was my first bank I wrote off as great place to solve problems, in fact I even thought they won't be trusted to work with. As I met one great man amongst one of their best machine called CHRIS **, my dead situations got revived and start to breathe again. First Internet bank proved to me what they call customer comes first approach. Chris **, went out of his job calling gathered their teams from the best there to see me through to the end of closing with flying colors. I have never praise any bank in my life as the all comes with suspicion and doubt, but first intenet bank is a place I called home because I wrote them off. Just only Chris ** erased my doubt about banks. They for sure have lots of miracle staff. I am so happy all from my A-Z with them.

    First Internet Bank response

    Our team truly cares about your mortgage wants and needs, so you can rest assured that we’ll help you get the best rates, while providing top-notch customer service. Thanks for choosing us, Anthony!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Dec. 16, 2021

    First Internet Bank (FIB) was great! My loan officer Gary ** was friendly, very knowledgeable and explained everything in detail. I first spoke to him on 10/27/2021 and closed on my refi loan on 12/13/2021 (47 days later!!). Gary & FIB were fast and efficient unlike my NewRez my mortgage holder at the time. I had been working with NewRez on a refi application and almost a year later they could not bring me to closing which is why I ended up applying with FIB. I highly recommend First Internet Bank!

    First Internet Bank response

    Hi Carmen, we’re glad our team was able to provide a smooth mortgage process AND fast, reliable customer service. Thanks for choosing us!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Sept. 19, 2022

    The ease and timeliness of our Home Refinancing Loan with First Internet Bank of Indiana was great. We really appreciated all the communication and customer service. Grant ** and other loan assistants responded quickly to questions. They provided us with a great rate, processed and went to closing quickly, making the loan experience better than expected.

    First Internet Bank response

    Hi Sharon! We know how stressful refinancing your home can be. That’s why our team makes sure you’re comfortable by providing great support every step of the way. We’re glad to have been able to make your experience a 5-star one and look forward to working with you again in the future!

    Be the first one to find this review helpful
    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Sept. 6, 2022

    We had a great experience with our loan from start to finish. Our questions were answered, all documents requested were clearly spelled out. The team we worked with was timely, professional and kind. We highly recommend this company! My wife and I are very happy customers!

    First Internet Bank response

    That’s right. A simple, smooth refinance process is our goal every time. Thanks for sharing, Orlando!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Aug. 22, 2022

    This process with First Internet was amazing, very responsive helpful staff. I worked with Bertie **, she was so kind and treated me like someone she genuinely cared about. I would recommend her to anyone looking for a good loan.

    First Internet Bank response

    That’s right, Alyssa. No matter where you are in the mortgage process, our team makes YOU the priority and that makes all the difference. Thanks for sharing your experience with us!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Aug. 8, 2022

    Good that I just try to apply for the personal loan so I have a good experience with you guys. So can I try to apply for my personal loan, please I have a call when you guys but you close already. I put my new debit card in there for charge.

    First Internet Bank response

    Hi Luis, thanks for reaching out. Please contact our relationship bankers at bank@firstib.com or 1-888-873-3424 and they would be happy to assist you.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Aug. 3, 2022

    We were in a situation where the sellers needed a quick closing. Derek ** managed the entire process from initial inquiries through closing in under 30 days with excellent service and communications. Pricing was on point (less than the industry average) and the process was flawless.

    First Internet Bank response

    Great rates AND a fast closing? It really doesn’t get much better than that. Thanks for choosing us, Alex!

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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page.
    1. NMLS Consumer Access, “FIRST INTERNET BANK OF INDIANA.” Accessed August 29, 2022.
    2. Freddie Mac, “Refinance Trends in the First Half of 2021.” Accessed August 29, 2022.
    3. Federal Reserve Bank of St. Louis, “Federal Funds Effective Rate.” Accessed August 29, 2022.

    First Internet Bank Company Information

    Company Name:
    First Internet Bank
    Company Type:
    Public
    Ticker Symbol:
    INBK
    Year Founded:
    1999
    Address:
    8701 E 116th Street
    City:
    Fishers
    State/Province:
    IN
    Postal Code:
    46038
    Country:
    United States
    Website:
    www.firstib.com

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