Ally Bank mortgage review 2025

Note: In January 2025,  Ally announced it had exited the mortgage origination business. For more top picks for home loans, check out CNBC Select's best mortgage lenders list.

As an online-only bank, Ally Bank touts the speediness of its mortgage process: Borrowers can get preapproved in as little as three minutes and lock in their rate within 24 hours. Ally customers also close in an average of 35 days, a week less than the national average.

Unlike many lenders, Ally doesn't charge lender fees. But its rates are somewhat higher than the competition, which could swallow up any savings.

Ally doesn't issue VA, USDA or FHA loans, but if you have a small down payment, the Fannie Mae-backed HomeReady loan or Freddie Mac-guaranteed HomeOne loans allow borrowers to put down as little as 3%. 

Ally issues mortgages in all 50 states and Washington, D.C, but does not offer VA, USDA or FHA loans.

• Fixed-rate mortgages: With a fixed-rate mortgage, borrowers have the same rate for the duration of the loan term. Ally offers fixed-rate mortgages with terms of 15 years, 20 years and 30 years
• Adjustable-rate mortgages: ARMs start with a fixed rate and then become adjustable after a set amount of time. Ally customers can choose between a 5/6 ARM (fixed rate for five years and a variable rate every six months after that), 7/6 ARM (fixed rate for seven years and then a variable rate every six months) or a 10/6 ARM (fixed rate for 10 years, variable every six months thereafter).
• Jumbo mortgage: Jumbo loans exceed the borrowing limits set by the Federal Housing Finance Agency. Ally offers jumbo loans for up to $4 million for borrowers with a 680 credit score, a debt-to-income ratio of no more than 40%.
• HomeReady loan: This Fannie Mae-backed mortgage enables qualified borrowers who earn up to 80% of the area median income, have a 620 credit score and a debt-to-income ratio of no more than 50% to put as little as 3% down. 
• HomeOne loan: This Freddie Mac-guaranteed mortgage allows qualified first-time homebuyers who have a 660 credit score and a debt-to-income ratio of no more than 45% to put as little as 3% down, regardless of income or location. 

• Lender fees: Ally does not charge lender fees
• Prepayment penalty: Ally does not charge prepayment penalties 
• Rate lock fees: Rates are locked for up to 45 days for no fee. You may be charged to extend their lock, however.

Unlike many competitors, Ally Bank doesn't have proprietary low-down-payment mortgages. It does offer some exclusive benefits, however.

One Day Mortgage

Borrowers who provide the required financial documents can receive a conditional commitment letter within 24 hours of locking their rate.

Ally Home Grant

Ally offers a $5,000 home grant for a down payment, closing costs or other fees for homes in majority-minority census tracts in Philadelphia, Detroit and Charlotte, North Carolina. Borrowers must make no more than 100% of the median income in the area where the property is located.

Ally offers cash-out and rate-and-term refinancing, which doesn't tap into your home equity. It does offer home equity lines of credit.

• Credit score: You'll need a 620 to refinance a conventional loan with Ally and a 680 to refinance a jumbo mortgage.
• Debt-to-income ratio: Ally Bank requires borrowers to have a DTI ratio of no more than 45% or prove they have six months in savings. Ally's jumbo loans require a DTI of no greater than 49.99%.
• Home equity: Ally requires 3% equity to refinance at a lower rate or different terms and at least 20% for a cash-out refinance. For jumbo loans, homeowners need 20% for a rate-and-term refinance and at least 15% to get a cash-out refinance. 
• Home appraisal: An appraisal is generally necessary for most refinance applications, but applicants with conventional loans can receive a waiver. 

Ally scored well above average on J.D. Power's 2022 U.S. Mortgage Origination Satisfaction Study but was not rated by the agency in 2023 and has not appeared on its mortgage servicer surveys. It received an A- rating from the Better Business Bureau.

Unlike many lenders, Ally lists current sample mortgage rates on its website. But while there is a chat feature, it's only available for existing borrowers.

Customer service agents are not available by phone on Sundays

Ally doesn't have physical branches but you can apply for a mortgage online or over the phone at 855-256-2559, Monday through Friday from 9 a.m. to 9 p.m. ET and Saturday from 10 a.m. to 4 p.m.

Ally says borrowers can get preapproved in as little as three minutes. Before you apply, check your credit report and gather your financial documents.

Here's how Ally Bank compares to two major competitors.

Ally Bank vs. Rocket Mortgage

While Rocket Mortgage charges lender fees, which can equal up to 2% of the loan amount, its rates on a 30-year fixed mortgage are lower than Ally's. Rocket also issues FHA, USDA and VA loans, which Ally doesn't. 

Like Ally's HomeReady loan, Rocket's Rocket ONE+ mortgage is aimed at lower-income buyers who make 80% of the area median income. But it allows borrowers to put just 1% down, compared to 3% with Ally. It also comes with a down payment grant of up to 2% of the cost of the house and, unlike HomeReady, has no private mortgage insurance requirement. There is a $350,000 cap on a Rocket ONE+ mortgage, however.

Ally Bank vs. Wells Fargo

Wells Fargo's mortgage rates are more competitive than Ally's and it has physical branches for customers who prefer an in-person experience. It does charge lenders fees, however, and has a higher credit score requirement for jumbo loans.

Wells Fargo's Dream. Plan. Home. loan is comparable to the HomeReady loan, allowing borrowers who earn 80% of the median income in their area to make a 3% down payment.

Ally has a $5,000 home grant that can be put toward a down payment but Wells Fargo's $10,000 down payment grant is twice as big, available in twice as many cities and to borrowers earning up to 120% of the median income. Wells Fargo also has a $5,000 closing cost credit available to homebuyers in 18 states.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online experience and customer satisfaction. 

In addition, we incorporate findings from independent sources, including lender scores from J.D. Power's U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.