Anyone have experience with Ally Home Loans?

[Curious George]

Considering getting a conventional mortgage through Ally, which offered the best rate and terms that I can tell (first home purchase). Does anyone have any experience with Ally Home Loans, good or bad?

The loan documents say they will sell the loan after closing, so I'm specifically wondering if anyone knows who they sell the loan to and what the experience is/was with the original process of obtaining the mortgage and then paying it monthly to the servicer.

Thank you!

[Curious George]

Anyone?

Even general experience/advice about going through an online mortgage company instead of a traditional brick and mortar bank may be helpful.

[uksho]

Probably my response would not be very helpful
but we were under contract , ultimately backed out

I was working with Better , they seemed responsive

recently there was a thread about Mortgage , and someone got good rates with key bank

looks like the rates have gone up significantly, they are quoting 3.75 for 30 fixed

did anyone got a better rate recently? What’s your rate ?

[Curious George]

I thought that rates had gone up, too, but it’s showing 2.5% with no points for 20% down 15 year fixed. I got another quote from a brick and mortar for 3.375% 30 year fixed.

[mamaham]

I did a refi with ally. It was great experience. Everything was online then they sent a notary to our house for closing. They have not sold my loan and haven’t had any problems to date.

[Curious George]

I did a refi with ally. It was great experience. Everything was online then they sent a notary to our house for closing. They have not sold my loan and haven’t had any problems to date.

Thank you!

[uksho]

I understand the rates are lower , but do you see overall advantage of a 15 year mortgage. Rates are still less than 4 %. And the difference is probably 0.7%

if you invest that money , probably the returns would be better ?

[Curious George]

I understand the rates are lower , but do you see overall advantage of a 15 year mortgage. Rates are still less than 4 %. And the difference is probably 0.7%

if you invest that money , probably the returns would be better ?

I agree with you and thought about that. The only advantages I see are:

1. I’m pretty debt averse, and having a paid for house a little sooner would give me some peace.

2. I live in a state that only allows tenants by the entirety for real estate, so paying down the mortgage in 15 years vs. 30 years offers a little bit of asset protection not available for a taxable account.

With that said, I am open to hearing any other arguments toward choosing the 30 year mortgage instead. (I think Ally has an even better rate than 3.375% for the 30 year mortgage, maybe 3.25%, but I’d have to go back and check.)

[uksho]

I am also Not sure, it depends on how market behaves
my current mortgage was small, I paid it off , I am debt averse like you
but wasn’t the best financial Decision.

[zlandar]

I would take the 15 year unless the interest spread is less than 0.5%. While you would likely do better investing the extra payments I like building equity in my home at a much faster pace than a 30 year. I felt comfortable having more equities in my investment portfolio as I paid down the mortgage.

I ended up paying off my 15 year in 8 years. Feels good no regrets.

[adventure]

If it’s a conventional loan, you should expect they can sell it to Frannie/Freddie. They might not; or not soon, or they might but remain the servicer. Does selling the loan concern you?

[Curious George]

I would take the 15 year unless the interest spread is less than 0.5%. While you would likely do better investing the extra payments I like building equity in my home at a much faster pace than a 30 year. I felt comfortable having more equities in my investment portfolio as I paid down the mortgage.

I ended up paying off my 15 year in 8 years. Feels good no regrets.

Thank you for validating my thinking on this. I went back and forth about 15 vs. 30 year, but the actual dollar difference between the two options is worth the peace of mind to me. In other words, I’ll still be able to hit my other savings goals despite the higher mortgage payment with the 15 year loan.

So, 15 year fixed it is for me, and I’ll likely end up paying it off early, too.

[Curious George]

If it’s a conventional loan, you should expect they can sell it to Frannie/Freddie. They might not; or not soon, or they might but remain the servicer. Does selling the loan concern you?

Selling the loan doesn’t concern me at all (unless I’m missing some major detail about that). I was mostly concerned with the loan servicer — some are better than others from what I’ve read in other threads on this forum.

[HandFellow]

I refinanced with quicken a few years ago. They sold it within 3 months to some random company. Then that random company sold it to Carrington out of Indiana. I finally got tired of all the logins and tax statement gathering, so i refinanced again with a local small bank that holds the loan.

Having someone sell your mortgage really isn't all that much of a hassle but it certainly is an extra step of complexity that i don't want or need.

[adventure]

Selling the loan doesn’t concern me at all (unless I’m missing some major detail about that). I was mostly concerned with the loan servicer — some are better than others from what I’ve read in other threads on this forum.

Thanks for the reply. Same for me. It can be a pain to have a new process, etc. I like routine, ha!