Ally Bank Mortgage Review 2023
Ally Bank at a glance
 5 stars
| Minimum credit score: 620 Minimum down payment: 3% Available loan products and programs: Conventional, Jumbo |
Our verdict: Ally provides a clear and transparent online process, paired with quick turnaround times. For homebuyers in the market for a conventional or jumbo loan who are comfortable with a largely digital mortgage experience, Ally is a solid choice.
See how we reached our verdict below.
| Pros | Cons |
|---|---|
You can apply online and get preapproved for a mortgage in as little as three minutes. You won’t have to wait long to close (Ally closes 10 days faster than the industry average, which is around 50 days). Your closing costs won’t include any lender fees. | You won’t find FHA loans, VA loans or USDA loans. You won't have access to home equity loans or lines of credit. You won’t get in-person service with your mortgage because Ally doesn’t operate branches. |
On this page
Ally Bank is an online financial institution and lender headquartered in Detroit. The bank was founded in 1919 as a division of General Motors and rebranded as Ally in 2009. As part of their partnership with Better Mortgage, Ally is able to offer customers a cutting-edge online experience built on Better’s speedy and time-tested mortgage processing platform. Ally is licensed to lend in 46 states — a list that doesn’t include Hawaii, Nevada, New Hampshire or New York.
Ally Bank’s mortgage products
Conventional
- Purchase loans are available with 15-, 20- and 30-year fixed-rate terms.
- Adjustable-rate mortgages (ARMs) are also an option and offer 5-, 7- and 10-year initial fixed-rate periods.
- Rate-and-term refinances with Ally can help homeowners save on their monthly mortgage payments or change their loan terms.
- Cash-out refinances are available for homeowners who wish to borrow against their home equity.
FHA
Not offered by this lender.
VA
Not offered by this lender.
Jumbo
- Jumbo loans are available for up to $4 million with a minimum 10% down payment and can be used for a wide variety of property types including vacation homes and investment properties.
Special programs
- Ally offers Fannie Mae’s HomeReady program, which is designed to support buyers earning less than 80% of the area median income and requires only a 3% down payment.
Ally Bank’s mortgage rates and fees
Ally publishes current mortgage rates online for both its fixed-rate and adjustable-rate loans. It also offers the option to customize the rates you’re seeing according to credit score, location, housing type, home price and more. Rates quoted also include options for buying mortgage points to lower the interest rate or receiving a lender credit in exchange for a higher rate.
Ally notes that it doesn’t charge lender fees (application, origination, processing or underwriting fees). While this does streamline the process, it doesn’t necessarily mean that you’ll save a ton on your loan. Lenders who offer “fee-free” mortgages often build these costs into another part of the loan to make sure that they don’t lose out.
The only way to be sure you’re getting a great deal is to shop around and compare both the interest rates and annual percentage rates (APRs) on any loan offers you consider.Borrowers should also still expect to face some closing costs, including appraisal and title service fees. Ally estimates that closing costs will equate to between 2% and 5% of the home’s purchase price.
| Mortgage rates published online? | |
|---|---|
| Rate information updated daily or weekly? | |
| Lender fees disclosed? |
Ally Bank’s application experience
Ally makes it easy to apply online and get preapproved in minutes. You can upload, sign and submit documents online. Closing, however, isn’t digital — you’ll have to sign the final paperwork in person.
Ally Bank’s customer service experience
Customer service is available via phone at 855-256-2559 and can be accessed Monday through Friday from 8:30 a.m. to 8:00 p.m. EST, and Saturdays from 8:30 a.m. to 1:00 p.m. EST. If you aren’t a customer yet but are seeking a new home loan, you can enjoy extended hours to 10 p.m. on weekdays and 4 p.m. on Saturdays.
If you prefer texting, you’ll be happy to know that you can also text your loan officer with questions.
How does Ally Bank compare to other lenders?
| Ally Bank | Flagstar Bank | Mr. Cooper | |
|---|---|---|---|
| Lender rating |
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| Minimum credit score | 620 | 580 to 620 | Not published |
| Minimum down payment | 3% | 0% to 3.5% | 0% to 3.5% |
| Loan products and programs |
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How we rated Ally Bank
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Ally Bank’s scorecard: 4/5
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application