Ally Bank Mortgage Review 2021

Ally Bank overview

Good for: Borrowers looking for a convenient online process and a conventional loan Ally Home is the mortgage-lending division of Ally Financial, which started offering direct-to-consumer home loans in 2016. Ally Bank had $172 billion in assets at the end of 2020. The lender provides several mortgage options, including conventional loans, jumbo loans and adjustable-rate loans in five- seven- or 10-year terms. Ally Home also offers refinancing options, including rate-and-term and cash-out refinancing. It doesn't offer FHA loans, VA loans, USDA loans or home equity loan options. Notably, Ally Bank customers get a discount on closing costs as long as their account has been open for at least 30 days. With Ally, borrowers can complete their application online, but everything is finalized in-person. Once preapproved, you'll upload, sign and submit documents online, and lock in your rate. Customer support is available by text, phone or email throughout the process for personalized guidance along the way.

Loan types

• Conventional
• Jumbo
• Fixed-rate
• Adjustable-rate
• Rate-and-term and cash-out refinancing

Lender fees

Ally Home does not charge lender fees.

Rates

Ally Home posts detailed rate information on its website, and rates can be updated throughout the day.

Reputation

Ally Home has a B+ from the Better Business Bureau, but is not accredited by the organization. Ally Financial’s Trustpilot rating is 1.4 stars, or “bad.” The low score is based on approximately 130 complaints primarily focused on auto loans.

Online services

Ally Bank doesn’t have brick-and-mortar locations, so if you borrow through this lender, you’ll do so online. The lender also offers tips and educational articles about the mortgage-lending process on its website, and if you have the Ally Bank app, you can access your home loan that way.

Minimum borrower requirements

Ally Home adheres to the conforming loan requirements for mortgages approved by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. For conventional loans, key requirements include good credit (typically a FICO score of 620 or higher). Jumbo loans require a minimum credit score of 700 and a down payment as little as 15 percent without private mortgage insurance (PMI). Debt-to-income ratio and employment history also factor into the lender’s decision when approving a home loan.

Refinancing with Ally Bank

Ally Home offers rate-and-term and cash-out refinancing; you can apply through the lender’s website.

Not sure if Ally Bank is right for you? Consider these alternatives

• ConsumerDirect Mortgage review: This online lender offers a variety of mortgage types, including some government loans
• Cherry Creek Mortgage review: This lender originates loans in more than 30 states
• SoFi mortgage review: This digital finance company also offers home loans
• USAA mortgage review: If you or a family member have served in the military, USAA is a strong choice
• Allied Mortgage Group review: This lender does business in over 30 states and has branches in eight

Breakdown of Ally Bank overall review score

• Affordability: 15/15
• Availability: 19/20
• Borrower experience: 9/10

Review methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.