Ally Bank Mortgage Review 2021

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Ally Residential Mortgage Overview

Ally Home, the mortgage division of Ally Financial, is an online lender with a seamless digital mortgage process. Borrowers can get mortgage pre-approved, download documents, track the progress of a loan application, and electronically sign disclosures, all online or through an easy-to-use mobile app.

And because it’s a full-service online bank, Ally also offers checking and savings accounts, auto loans, investment products, personal loans, and more. For existing bank customers, getting a mortgage with Ally has the added benefit of keeping all of your accounts with one bank.

The downside: Ally’s mortgage menu and footprint are limited at the moment. Borrowers in 37 states and the District of Columbia can apply for a conventional, jumbo, or refinance mortgage, but if you’re looking for a government-guaranteed loan like an FHA or USDA loan, you’re out of luck.

Pros and Cons of the Ally Home Mortgage

Advantages

  • Pre-approval and online applications via the mobile application

  • Customizable online rates

  • Ally customers get $ 500 off closing costs

The inconvenients

  • No government guaranteed mortgages such as FHA loans, VA loans, or USDA loans

  • No home equity loans or lines of credit

  • No service to Alaska, Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New York, North Carolina, Vermont, Virginia or Wyoming

  • No physical location

Ally Home Mortgage: Types and Products of Loan

Here are the types of mortgages currently offered by Ally Bank:

Ally does not offer United States Department of Agriculture mortgages (USDA loans), Federal Housing Administration mortgages (FHA loans), Department of Veterans Affairs mortgages (VA loans) , reverse mortgages, home improvement loans and other niche products.

Ally offers jumbo loans of up to $ 4 million. Down payment requirements vary depending on the amount you borrow.

And if you have an existing mortgage, you can swap it out for rate and term refinancing, which could save you money, or leverage your home equity through refinancing. with collection.

With Ally, you will have the choice between a fixed rate loan, the rate of which never changes, and a Variable Rate Mortgage (ARM), whose rate can change periodically. You can choose a fixed rate term of 30, 20, or 15 years and ARM terms of 10/1, 7/1, and 5/1. With an ARM 5/1, for example, you would have the same interest rate for the first five years. After that, the rate may increase or decrease once a year for the remaining term, depending on the general mortgage market.

Ally Home mortgage transparency

The Ally Home website is easy to navigate and clearly describes the home buying process. It also comes with several calculators and guides to help you choose the best mortgage for your situation and determine the price of the home you can afford.

Customers can get a personalized quote online in minutes and even request a loan pre-approval. If borrowers have questions or need help, loan officers are available by phone. Ally does not maintain branches in person like other lenders do, so speaking face to face is not an option.

Ally Home Mortgage: rates and fees

Ally Home announces purchase and refinance rates for 15, 20 and 30 year mortgages as well as some ARM terms. The bank also makes it clear how much money you would pay for discount points, which are optional fees you can pay to lower your rate.

To qualify for a mortgage, you will need a credit score of at least 620 for compliant loans and 700 for jumbo loans. However, a higher score will likely help you get better mortgage rates.

While the industry average for mortgage closing is 58 days, Ally Home’s average is around 38 days this year for purchase loans, according to a spokesperson for Ally. This can get you to the closing table faster, which might sweeten the deal when you make an offer to buy.

You can lock in an interest rate online for free for up to 75 days and optionally extend the rate lock. Current Ally customers get a $ 500 reduction on closing costs, and borrowers never pay lender fees or prepayment penalties.

However, borrowers can pay out of pocket:

Refinancing with Ally Home Mortgage

If you have an existing mortgage, you can refinance with Ally Home using these options:

  • Refinancing of collection, allowing you to take out a mortgage that’s more than you owe, pay off your current mortgage, and keep the extra money. You then pay off the new, larger loan over time and can use the money for any type of expense.
  • Rate and term refinancing, in which you change the term of the loan, the interest rate, or both. Homeowners typically do this to reduce their monthly mortgage payments, get rid of private mortgage insurance, or speed up their repayment schedule.

Plus, you’ll get a $ 500 rebate if you refinance an existing Ally mortgage.

Ally Home Mortgage vs. Other Mortgage Lenders

Ally Residential Mortgage Best mortgage Fairway Independent Mortgage Corporation.
Minimum credit score 620 to comply; 700 for jumbo 620 to comply; 700 for jumbo 620 for conventional loans; 660 for jumbo loans; 600 for FHA loans; 600 for VA loans
Minimum deposit 3% for conventional; 5% for compliance; up to 20% for jumbo loans 3% 0% to 5%
Where does the lender operate? 37 states and Washington, DC 46 states and Washington, DC All 50 states and Washington, DC
Main types of loans Conventional, jumbo, adjustable rate, fixed rate, refinancing, cash-out refinancing Conventional, jumbo, FHA, adjustable rate, fixed rate, refinancing, cash-out refinancing Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit

How to Shop for the Best Mortgage Rate

Getting the best mortgage rate on your home loan is important because it can potentially save you thousands of dollars in interest over the life of the loan.

To find a good deal, start by collecting quotes from several lenders. According to a Freddie Mac Poll, borrowers will save the most if they get five or more quotes. Then compare the interest rate and the closing costs. The rates may differ slightly, but an online mortgage calculator can help you determine how much savings are in that difference.

Take a look at an example: Let’s say you receive two mortgage rate quotes for a home worth $ 300,000 with a 20% down payment and a 30-year term.

Interest rate Monthly payment of principal and interest Registered interest
3.5% $ 1,077
3.25% $ 1,044 $ 11,880

With an interest rate of 3.5%, the monthly payment of principal and interest is $ 1,077. But with an interest rate of 3.25%, you save $ 33 per month on interest charges. It may not seem like much, but it represents a savings of $ 11,880 over 30 years.

Final result

Ally Home could be a good option if you are looking for a standard mortgage and prefer a fully digital application process. You will be able to get a pre-approval letter online or through the app in a matter of minutes, which can help you start the home buying process. But as with any financial product, it’s always a good idea to shop around to make sure you’re getting the best deal.


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