Ally mortgage review 2023

Ally Bank is an online bank that offers everything from checking and savings accounts to credit cards, investing services, car loans, personal loans, mortgages, and more. The bank has no physical locations or branches — all of its products are offered digitally, with customer service available via live chat, phone, or email.  

Are you considering using an Ally mortgage for your home purchase or refinance? Here’s what to know about the company and its offerings.

Conventional loans: Ally offers both fixed and adjustable rate mortgages over a range of terms. Its fixed-rate terms include 15-, 20-, and 30-year options, while homebuyers interested in an adjustable rate mortgage can choose from ⅚, 7/6, and 10/6 terms.

Jumbo loans: Homebuyers pursuing high-priced properties can pursue jumbo mortgages up to $4 million.

Fannie Mae’s HomeReady mortgage program: Low- to mid-income buyers, as well as first-time homebuyers, can take advantage of this program, which requires a down payment of just 3%.

Ally’s mortgage rates are on par with industry averages. Though rates are high right now, Ally helps offset the expense at least slightly by charging no lender-side fees, unlike many other companies. That means no application, origination, underwriting, or processing fees.

Requirements for Ally’s mortgages depend on the loan program and loan amount. For conventional or Fannie Mae HomeReady mortgages, borrowers must have a credit score of 620 or higher. To qualify for a jumbo mortgage, the minimum credit score goes up to 680.

Most of Ally’s conventional mortgage offerings require a 20% down payment, but there may be exceptions. The minimum down payment is 3% for the HomeReady program. If you’re opting for a jumbo mortgage, the minimum down payment is 10%.

One of Ally’s biggest advantages is that it charges no lender-side fees on its mortgages. There’s no application fee, no origination fee, no processing fee, and no underwriting fee, either. 

You can also get pre-approved in just three minutes online, and the lender closes up to 10 days faster than the industry average, making it one of the best mortgage lenders for competitive markets where a quick closing can give you an edge.

On the downside, Ally doesn’t have as many loan options as some competitors. It currently offers no FHA, VA, or USDA loans — all of which are popular programs with first-time homebuyers. The company also has low ratings on Trustpilot, though most customer reviews pertain to its auto loans, credit cards, and other products.

Ally’s mortgage application can be completed totally online. That includes filling out the application form, uploading your documentation, and even signing your documents. According to Ally, the entire process takes just 15 minutes.

The lender also has a mobile application you can use to apply for your loan and track its progress, and it offers e-closings in many places, which means you can close on your loan remotely — without ever stepping foot inside an office. 

An Ally mortgage might be a good fit for consumers who value a streamlined digital process and speed. The bank offers pre-approvals in just three minutes, and loan closings are often completed up to 10 days faster than other lenders. 

Ally may also be a good option if you’re looking for a mortgage with lower closing costs. Since Ally doesn’t charge any lender-side fees — which often add up to thousands of dollars for homebuyers — you need less cash at closing. 

Ally is not a great fit if you’re looking for a government-backed mortgage, like an FHA, VA, or USDA loan. These are typically smart options for borrowers with lower credit scores, veterans or military members, and people who are buying a house in a rural area. Both VA and USDA loans require no down payment.

Ally is an online mortgage lender that offers low rates, a fast process, and several loan options. It’s not, however, the only mortgage company out there. To be sure you’re getting the best rate and product for your needs, make sure to shop around for your mortgage lender. 

According to Freddie Mac, borrowers who shop around for their mortgages can save big. In fact, getting just two rate quotes can save you as much as $600 per year. Getting four rate quotes? That could equal over $1,200 in annual savings.

That’s just in interest, too. Lenders also vary in fees, so apply with several different companies. Each should give you a loan estimate form, which will spell out all the fees, closing costs, interest, and other financial details of the mortgage they’re offering. You can then compare your options and ensure you’re getting the best deal.

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].