Chase Mortgage offers a broader range of loan options and a physical presence, making it a more versatile choice for many borrowers. However, Ally Home's lack of lender fees and RefiNow program could be attractive to specific borrowers. It is important to note that Ally Home has discontinued its mortgage lending business.
| Attribute | Chase Mortgage | Ally Home |
|---|---|---|
| Interest Rates (APR) | Chase's interest rates are generally competitive and often slightly below the national average. Rates are updated daily, Monday through Friday. Actual rates depend on factors like credit score, loan type, down payment, and location. Interest rate reductions are available for existing customers and family/friends of Chase employees. | Ally Bank's rates were fairly competitive, matching the average prime offer rate (APOR) in 2023. |
| Loan Options (Fixed-Rate, ARM, FHA, VA, Jumbo) | Chase offers fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and jumbo loans. They also have the DreaMaker mortgage, designed for low-to-moderate-income borrowers. | Ally Bank offered conventional and jumbo loans with fixed- and adjustable-rate terms. They did not offer FHA, VA, USDA, construction, or interest-only loans. |
| Down Payment Requirements | Some Chase loan programs offer low down payment options. The DreaMaker and Standard Agency loans both require just 3% down. FHA loans start at 3.5% down. VA loans may have 0% down payment options available. | Ally's main loan option was a conventional loan with a minimum of 3% down. Jumbo loans required a minimum 10.01% down payment. |
| Closing Costs | Closing costs can range from 2% to 6% of the loan amount. The average total cost of taking out a mortgage through Chase was $5,453, about 25% less than the industry average. Chase provides a Loan Estimate document outlining expected closing costs. | Closing costs typically ranged from 2% to 5% of the home's purchase price. Borrowers were responsible for third-party fees like appraisal and title fees. In 2023, the average total loan cost at Ally across all loan types was $7,193, not including origination fees, which averaged $4,400, or mortgage points, which averaged $5,460. Ally didn't charge lender fees, which could save borrowers 1% to 2% of the total mortgage amount compared to lenders that do charge these fees. |
| Credit Score Requirements | For conventional loans, a minimum credit score of 620 is typically needed. FHA loans may accept scores as low as 580. While VA loans don't have a minimum credit score requirement, lenders may require a score of 620 or higher. | A minimum credit score of 620 was typically required for conventional loans. A credit score of 680 was needed for jumbo loans. |
| Debt-to-Income Ratio (DTI) Limits | A good DTI is generally lower than 36%, but some loans may accept a DTI as high as 50% with compensating factors. | Most approved applicants had a DTI of less than 40%. For the RefiNow program, a DTI of 65% or less was required. |
| Online Application Process | Chase offers a streamlined online application process. You can apply online or speak to an advisor by phone or at a local branch. You can also upload documents online through Chase's secure portal or via secure email. | Ally Bank offered digital pre-approval, application, and loan tracking. Ally offered an online application process where documents could be submitted and signed electronically. |
| Customer Service Availability (Phone, Email, Chat) | Chase provides customer service via phone, online, and in-person at branches. | Ally Bank offered customer service via phone. |
| Pre-Approval Process and Speed | Chase offers a quick and easy pre-approval process online. | A basic pre-approval could be requested online and processed quickly with a soft credit check. Verified pre-approval letters (VPAL) required more documentation and a hard credit check. |
| Refinancing Options | Chase offers various mortgage refinance options, including options to lower your monthly payments, pay off your loan sooner, or access cash for large purchases. | Ally Bank offered rate-and-term and cash-out refinancing options for conventional and jumbo loans. They also launched RefiNow, a refinancing option for borrowers with lower incomes who may not qualify for other options. |
| Mortgage Insurance Requirements (PMI, MIP) | If you put less than 20% down on a conventional loan, you'll likely need private mortgage insurance (PMI). FHA loans require an upfront mortgage insurance premium and monthly mortgage insurance for the life of the loan. VA loans do not require private mortgage insurance. | If the down payment was less than 20%, private mortgage insurance (PMI) was usually required. |
| Geographic Availability | Chase has a major physical presence throughout the country, with in-person mortgage experts available in 30 states across the continental U.S. They have over 4,700 branches located throughout the contiguous United States. | Ally Bank was licensed to make home loans in all 50 states. |