Ally Mortgage Review 2023

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Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

About Ally Mortgages

Ally is an online bank that lends mortgages in all 50 states.

Ally offers conforming and jumbo mortgages. Its jumbo loan amounts go up to $4 million, which is larger than many other jumbo lenders.

Most mortgage lenders offer at least one or two government-backed mortgages, such as FHA loans or VA loans, in addition to conventional loans. This makes Ally a little unusual, and may put borrowers at a disadvantage since they can’t explore other mortgage options.

On the other hand, more than 70% of home purchase loans in the US are conventional loans, according to Home Mortgage Disclosure Act data, so most borrowers will likely be able to find what they’re looking for with a conventional-only lender.

You’ll get started with this lender by applying online. You can also start an application over the phone between 9 a.m. and 9 p.m. ET Monday through Friday and 10 a.m. to 4 p.m. ET on Saturdays.

Is Ally Trustworthy?

The Better Business Bureau gives Ally Home an A rating, rather than an A+ rating, due to 5 unresolved complaints that have been filed against the business. The BBB measures trustworthiness by evaluating responses to customer complaints, honesty in advertising, and transparency about business practices.

A strong BBB grade doesn’t guarantee you’ll have a smooth relationship with a lender, though. You may want to read online reviews or ask friends and family about their experiences with Ally.

Ally doesn’t have any recent public controversies, so you may decide you’re comfortable getting a mortgage with the company.

This lender has a 4.44 out of 5-star rating on its Zillow lender profile, based on over 300 customer reviews.

Ally Mortgage Interest Rates and Fees

On its website, Ally Home Mortgage provides an easy tool to enter information about your neighborhood, home type, down payment, and credit score, and you can see customized rates for fixed- and adjustable-rate loans.

Ally doesn’t charge lender fees, including application, origination, processing, or underwriting fees. However, that doesn’t mean you won’t pay any lender-related fees associated with your loan at closing. A common reason for this is if a loan includes discount points, which give borrowers a lower interest rate in exchange for paying money at closing.

According to Home Mortgage Disclosure Act data, Ally’s conventional loan borrowers paid an average of $2,994 in origination charges in 2021, much of this coming from discount points. This is on the low end compared to other lenders.

Ally Mortgage: Overall Rating

FeatureInsider rating (out of 5)
Loan types2
Customer satisfaction4.44

Ally Mortgage: Pros and Cons

  • Smooth online application process

  • Get preapproved in 3 minutes

  • No origination, application, underwriting, or processing fees

  • Customizable rate tool

  • Get a jumbo loan up to $4 million

  • Limited home loan options (only offers conforming and jumbo mortgages)
  • Doesn’t accept alternative forms of credit, like proof of paying bills

Ally Home Mortgage FAQs

Is Ally Home legit?

Yes, Ally is a legitimate mortgage lender. Ally is an online bank that offers other bank services in addition to mortgage lending. 

Is Ally Financial a good lender?

Ally could be a good fit if you have a good credit score and want an online application experience. But if your credit score is below 620, you’ll need to look elsewhere.

Does Ally use Better Mortgage?

Ally’s mortgage application and underwriting process is managed by Better Mortgage.

What is the downside of Ally Bank mortgages?

The downside of getting a mortgage from Ally is that you won’t have many loan options to choose from, since it only offers conforming and jumbo loans.

Where are Ally Bank mortgages available?

You can get an Ally mortgage in all 50 US states and Washington, DC.

How Ally Mortgages Compare

Ally Home vs. Better Mortgage

Ally’s application is powered by Better Mortgage, so you might be wondering what the difference between these two lenders are and whether you’d be better off going directly to Better.

Both lenders offer a convenient online experience, and Better Mortgage – Brand Name is one of the best online mortgage lenders currently available. But if you’re looking to keep your out-of-pocket costs down, you might prefer Ally, which doesn’t charge any lender fees. 

Better has a slightly wider range of mortgages to choose from, so if you’re looking for a tech-forward lender that offers government-backed mortgages, it might be a good fit for you. 

Ally Home vs. Rocket Mortgage

Rocket Mortgage offers more variety than Ally. It has FHA and VA loans, in addition to custom fixed-rate terms, ranging from eight to 30 years.

Rocket Mortgage – Brand Name is also a leader in the industry when it comes to customer satisfaction. In J.D. Power’s 2023 US Mortgage Origination Satisfaction Study, Rocket ranked No. 2, and it was No. 1 in 2022. Ally ranked No. 6 in 2022. It wasn’t included in 2023’s study.

You might prefer Ally if you’re looking for a large jumbo loan. Ally offers jumbo loan amounts up to $4 million, while Rocket’s jumbo offerings only go up to $3 million.

Why You Should Trust Us: How We Reviewed Ally Mortgages

To review Ally Bank’s mortgage offerings, we used our methodology for reviewing mortgage lenders.

We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.

Read the original article on Business Insider