Bank of Internet is a bank that functions exactly as it’s brand name would imply. It is a 100% online bank. They have no brick and mortar branches and only accept deposits and hand out mortgages over the phone or through an online application process. Though they are completely virtual, they are still an FDIC insured bank and an Equal Housing Member. They have also received many high marks in stress tests and overall fiscal stability since their inception.
Refinancing Your Mortgage – Bank of Internet:
There are many different reasons to refinance your existing mortgage. For most people, it’s to lower the interest rate and the monthly payment you owe each month. You may wish to pull cash out of your home and use the money to invest or to do home improvements. Refinancing is also a great tool for consolidating debt and for reducing money spent on higher interest credit cards, car payments and student loans.
To refinance your mortgage through Bank of Internet, you’ll need to follow their online application process or call a representative directly. If you’re simply passively shopping for a refinance rate, Bank of Internet has a “Rate Watch Service” in which you can be notified via email when the rate changes on the mortgage product(s) you are in the market for.
Conforming Mortgage through Bank of Internet
Obtaining a fixed rate mortgage through Bank of Internet uses the same process as the refi. Simply call a representative or fill out an online application. They offer both 30 year fixed rate conforming mortgages as well as 15 year fixed rate conforming mortgages.
Mortgage Rates – Bank of Internet
(Rates accurate as of Jan 2011. Please visit them at BankofInternet.com for updated rates.)
- 30 year fixed rate mortgage going for 4.859% APR
- 15 year fixed rate mortgage going for 4.289% APR
Fixed Rate Mortgage through Bank of Internet Features:
- Loan amount less than $417,000 (1-unit home, excludes HI and AK)
- Loan amount less than $625,500 (1-unit home, HI and AK only
- Loan amount to be less than 80% of the home’s appraised value
- Credit score above 680
- Total monthly debts not to exceed 45% of combined monthly gross income
- Proof of income sufficient to support the debt requirements
- Available with purchase or refinance transactions
Bank of Internet Mortgage Review:
“Based on BBB files, this business has a BBB Rating of A+ on a scale from A+ to F.”
“BBB processed a total of 12 complaint(s) about this business in the last 36 months, our standard reporting period. Of the total 12 complaint(s) closed in the last 36 months, 8 were closed in the last 12 months.”
If you have experience with the mortgage process with Bank of Internet, please leave a comment below.