My mortgage refinance with First Internet Bank of Indiana ("First IB") is done. The new loan paid off the old loan. All done.
I thought I would update the progress as it moved along but it went so uneventful there wasn’t much to update. Here’s the timeline:
|1||Submitted application online. Didn’t get an instant approval. It said an agent had to review it.|
|2||Contacted by a loan officer. Received disclosure.|
|3||Faxed W-2, paystubs, bank statement, etc. Got the OK to lock, but rate/fees went above my target. Decided to wait.|
|9||Rate/fees hit target. Locked rate.|
|10||Received updated GFE and rate lock agreement.|
|22||Received appraisal report by email.|
|30||Underwriting approved. Picked date for closing.|
|36||Signed closing documents.|
|43||Old loan paid off.|
If I count the days between when I locked the rate and when I signed the closing documents, it was only 27 days. That’s considered fast these days. It was pretty much a standard process. There wasn’t any glitch.
First Internet Bank delivered what it promised. The final cost was $15 less than what was originally quoted. I received good service from my loan officer. When I refinance again, First IB would be my first choice.
First IB can do better if it uses a better settlement service company. In my previous refinance with National Mortgage Alliance (NMA), NMA’s settlement service vendor LSI managed to a zero-day interest overlap: the old loan was paid off on the same day the new loan was funded. First IB’s settlement service company took two days to pay off my old loan. Those two days cost me money.
It’s still within the usual performance standard, but once you know somebody else can do better, you hope everybody performs to the higher standard. For the amount I was able to save by going with First IB versus going with NMA, I’m not complaining.
All together, I spent about $200 on this refinance. The $200 pays for:
- closing cost not completely covered by a lender credit from First IB
- payoff statement and lien release fees charged by the previous lender
- 2 days of interest overlap
That $200 saves me over $1,000 in mortgage interest every year. It’s money well spent. However, if I had waited until now, the refi would cost even less because rates have come down slightly. Patience pays in many cases.