<p><img src="https://static2.businessinsider.com/image/5e94d337b3b0921b4325e183-2400/ally%20high%20yield%20savings%20account%204x3.png" border="0" alt="Ally high yield savings account 4x3" data-mce-source="Alyssa Powell/Business Insider"></p><p></p><bi-shortcode id="disclaimer" class="mceNonEditable" data-type="pfi"></bi-shortcode><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><bi-shortcode id="table-of-contents-sticky" class="mceNonEditable" data-type="h2">Table of Contents: Masthead Sticky</bi-shortcode><ul class="summary-list"><li>With <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="name" data-customtext="Ally Home" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Financial</bi-inline-shortcode>, you can refinance into a conventional mortgage but not a government-backed mortgage.</li><li><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="name" data-customtext="Ally's" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Financial</bi-inline-shortcode> has a helpful online refinance calculator and gives you a quote within minutes.</li><li>If you're an <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode> customer, the company will contribute $500 toward your closing costs.</li><li><a href="http://newsletter.businessinsider.com/join/4np/personal-finance" target="_blank" rel="noopener" data-analytics-module="summary_bullets" data-analytics-post-depth="0" data-uri="11c8ffc9623a75216c65815dd08330db">Have the Personal Finance Insider newsletter sent straight to your inbox.</a></li></ul><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally Home" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode>, the home loan division of <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="name" data-customtext="Ally Financial" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Financial</bi-inline-shortcode>, allows you to either <a href="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-step-by-step-guide" target="_blank" rel="noopener">apply for a first mortgage</a> or <a href="https://www.businessinsider.com/personal-finance/how-to-refinance-your-mortgage" target="_blank" rel="noopener">refinance your home loan</a>. When you refinance your mortgage, you can take advantage of Ally's easy-to-use web interface to calculate your refinanced mortgage payments, get a quote in a few minutes, and sign and submit documents.</p><p>Although the <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode>mortgage application process is digital, you can contact a human customer service representative with questions. You will also meet someone face-to-face to sign your closing documents.</p><p>With <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode>, you can choose between two types of refinancing: <a href="https://www.businessinsider.com/personal-finance/cash-out-vs-rate-term-mortgage-refinance" target="_blank" rel="noopener">rate-and-term refinancing or cash-out refinancing</a>.</p><p>Rate-and-term refinancing changes either the interest rate, term length, or both. <a href="https://www.businessinsider.com/personal-finance/cash-out-refinance" target="_blank" rel="noopener">Cash-out refinancing</a> gives you a loan for more than what you owe so you can receive the difference in cash.</p><div><iframe src="https://smartasset.com/captivate/frame/umonjdcr" width="100%" height="630px" scrolling="auto" style="border: none;"></iframe></div><h2>Should you refinance your mortgage with Ally'</h2><table style="width: 100%; border-collapse: collapse;" border="1" cellpadding="10px"><tbody><tr><td style="width: 50%;"><strong>You may want to refinance with Ally if you ...</strong></td><td style="width: 50%;"><strong>You may not want to refinance with Ally if you ...</strong></td></tr><tr><td style="width: 50%;"><ul><li>Are comfortable using an online lender</li><li>Want to refinance into a conventional mortgage</li><li>Want a rate-and-term refinance or cash-out refinance</li><li>Have a 680 credit score, or 700 for a jumbo mortgage</li><li>Are already an Ally customer, so you qualify for $500 toward closing costs</li></ul></td><td style="width: 50%;"><ul><li>Prefer an in-person lender</li><li>Want to refinance into a government-backed mortgage</li><li>Have a low credit score</li><li>Live in HI, MA, MD, MN, NH, NY, NV, VA, VT, or WY</li></ul></td></tr></tbody></table><aside class="quick-tip headline-regular"><p><strong>The bottom line:</strong> Ally could be a good fit if you want to refinance into a conventional mortgage and are open to using an online lender.</p></aside><h2>The pros of refinancing with Ally</h2><h3>The process is almost entirely online</h3><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode> is an online company, so you'll sign and submit documents from your computer. Some homeowners may find this more convenient than driving to an office to speak with an agent.</p><p>The one exception to this rule is the closing process, which you do have to go through again when you refinance a home. You will sign the closing documents in person so they can be notarized. Ally will let you know where to go when the time comes, but you shouldn't have to travel too faryou just need to find a notary.</p><h3>You can receive a quote in a few minutes</h3><p>Because you do everything online, <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> can provide a quote for your new rate, monthly payment, and term length within a few minutes, and you can choose to <a href="https://www.businessinsider.com/personal-finance/lenders-extend-rate-lock-periods-2020-4">lock in your rate</a>.</p><h3>It provides a refinance calculator</h3><p>Refinancing can be complicatedthere are different ways to go about the process depending on whether you want to lower your monthly payments, reduce your interest rate, or shorten your term length.</p><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> offers an easy-to-understand <a href="https://www.ally.com/home-loans/refinance-calculator/" target="_blank" rel="noopener">refinance calculator</a> to help you figure out how refinancing could affect your finances. Provide information like the date you initially purchased your home, current rate, neighborhood, and goal for refinancing, and Ally calculates your new monthly payment amount, interest rate, and term length.</p><p>The calculator also shows how much you could save per month and/or over the course of the loan.</p><h3>You can choose between rate-and-term refinancing and cash-out refinancing</h3><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> offers two types of refinancing: <a href="https://www.businessinsider.com/personal-finance/cash-out-refinance" target="_blank" rel="noopener">rate-and-term or cash-out refinancing</a>.</p><p>Rate-and-term refinancing is probably what you think of when you hear the term "refinance." The goal is usually to pay less monthly, lower your rate, or change your term length.</p><p>Cash-out refinancing is an option if you have gained equity in your home. You receive a new loan for the value of your home rather than for the amount you currently owe. Subtract the amount you owe from your home value, and you receive the difference in cash. With a cash-out refinance, your goal might be to solve cash flow issues or use the money in another way.</p><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> offers both types of refinancing, so you can refinance for your specific goals.</p><h3>Ally will pay $500 toward closing costs for existing members</h3><p>If you already have an account with <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode> (including accounts with Ally Bank or Ally Invest, or an auto or home loan), Ally will contribute $500 to your closing costs. You must have had account for at least 30 days to qualify for the $500 contribution.</p><h3>Ally makes it easy to find your rate</h3><p>On its website, <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> provides an easy tool to enter information about your neighborhood, home type, down payment, credit score, and cash out amount (if applicable), and you can see customized rates for fixed- and variable-rate loans.</p><p>On the website, be sure you're looking at <a href="https://www.ally.com/home-loans/refinance-mortgage/" target="_blank" rel="noopener">the page for refinanced mortgages</a>, not first-time mortgages. Lenders offer different rates depending on whether you're taking out a first-time mortgage or refinancing.</p><h2>The cons of refinancing with Ally</h2><h3>You can only refinance if you live in certain states</h3><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode><a href="https://www.ally.com/" target="_blank" rel="noopener"></a> doesn't process loans for homes in Hawaii, Massachusetts, Maryland, Minnesota, New Hampshire, New York, Nevada, Virginia, Vermont, or Wyoming, so you can't use Ally Home if you live in these 10 states.</p><h3>There are no physical branch locations</h3><p>Because <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode>is an online company, there are no physical offices. If you prefer working with an agent face-to-face, you may want to refinance with another lender.</p><h3>Ally does not process government-backed loans</h3><p><a href="https://www.anrdoezrs.net/links/6415797/type/dlg/sid/1588689010159adfcyzswi%7Cxid:fr1588689013616ahj/https://www.ally.com/" target="_blank" rel="nofollow noopener" data-analytics-module="body_link" data-analytics-post-depth="60" data-orig-url="https://www.anrdoezrs.net/links/6415797/type/dlg/sid/1588689010159adfcyzswi/https://www.ally.com/" data-ml-id="26" data-ml="true" data-xid="fr1588689013616ahj"><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Bank</bi-inline-shortcode></a><a href="https://www.anrdoezrs.net/links/6415797/type/dlg/sid/1588689010159adfcyzswi%7Cxid:fr1588689013616ahj/https://www.ally.com/" target="_blank" rel="nofollow noopener" data-analytics-module="body_link" data-analytics-post-depth="60" data-orig-url="https://www.anrdoezrs.net/links/6415797/type/dlg/sid/1588689010159adfcyzswi/https://www.ally.com/" data-ml-id="26" data-ml="true" data-xid="fr1588689013616ahj"></a> does not process <a href="https://www.businessinsider.com/personal-finance/government-home-loans" target="_blank" rel="noopener">government loans</a>, including loans by the <a href="https://www.businessinsider.com/personal-finance/fha-loan" target="_blank" rel="noopener">FHA</a>, <a href="https://www.businessinsider.com/personal-finance/va-loans" target="_blank" rel="noopener">VA</a>, or <a href="https://www.businessinsider.com/personal-finance/usda-loan" target="_blank" rel="noopener">USDA</a>. These loans are available to people with lower credit scores and less money for a down payment.</p><p>If you have a government loan and want to refinance it to another government-backed loan, or if you want to refinance your regular mortgage to a government-backed loan, you'll have to go through a company other than Ally.</p><h2>Is Ally trustworthy'</h2><p>The Better Business Bureau gives Ally a B- in trustworthiness. The BBB evaluates factors like responses to customer complaints, transparency about business practices, and honesty in advertising. Ally may have a B- because it hasn't closed all of its customer complaints on the BBB website.</p><p>Unlike banks like<a href="https://www.businessinsider.com/personal-finance/wells-fargo-review#is-wells-fargo-trustworthy" target="_blank" rel="noopener" data-analytics-module="body_link" data-analytics-post-depth="80" data-uri="1cbbaedf4fc20291a5fd404e1d58b3dc">Wells Fargo</a>and<a href="https://www.justice.gov/opa/pr/justice-department-reaches-settlement-bank-america-resolve-claims-disability-discrimination" target="_blank" rel="noopener" data-analytics-module="body_link" data-analytics-post-depth="80" data-uri="7588236409d3f652db1304c8fe0d5c4b">Bank of America</a>, Ally doesn't have any recent public scandals, so you may decide you're comfortable refinancing with Ally.</p><h2>Refinancing with Ally compared to similar lenders</h2><table style="height: 283px; width: 0%; border-collapse: collapse;" border="1" cellpadding="10px"><tbody><tr style="height: 21px;"><td style="width: 25%; height: 21px;"></td><td style="width: 25%; height: 21px; text-align: center;"><strong><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode></strong></td><td style="width: 25%; height: 21px; text-align: center;"><strong><a href="https://better.com/" target="_blank" rel="noopener">Better.com</a></strong></td><td style="width: 25%; height: 21px; text-align: center;"><strong><a href="https://www.quickenloans.com/" target="_blank" rel="noopener">Quicken Loans</a></strong></td></tr><tr style="height: 42px;"><td style="width: 25%; height: 42px;"><strong>Online or in-person refinancing</strong></td><td style="width: 25%; height: 42px; text-align: center;">Online</td><td style="width: 25%; height: 42px; text-align: center;">Online</td><td style="width: 25%; height: 42px; text-align: center;">Online, with the option for in-person</td></tr><tr style="height: 42px;"><td style="width: 25%; height: 42px;"><strong>Government-backed loans</strong></td><td style="width: 25%; height: 42px; text-align: center;">None</td><td style="width: 25%; height: 42px; text-align: center;">FHA loans</td><td style="width: 25%; height: 42px; text-align: center;">FHA, VA, and USDA loans</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;"><strong>US states</strong></td><td style="width: 25%; height: 21px; text-align: center;">40 states</td><td style="width: 25%; height: 21px; text-align: center;">43 states</td><td style="width: 25%; height: 21px; text-align: center;">50 states</td></tr></tbody></table><h3>Ally vs. Better.com</h3><p>Both <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode>and <a href="https://better.com/" target="_blank" rel="noopener">Better.com</a> provide an online refinancing process, and both can provide you with a quote in a few minutes. Both companies offer rate-and-term refinancing and cash-out refinancing.</p><p>Neither Ally nor Better.com process VA or USDA loans, but you can refinance an FHA mortgage through Better.com.</p><p><bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode> operates in every state except Hawaii, Massachusetts, Maryland, Minnesota, New Hampshire, New York, Nevada, Virginia, Vermont, or Wyoming.</p><p>Better.com operates in every state except Hawaii, Massachusetts, Minnesota, New Hampshire, Nevada, Virginia, or Vermont. If you live in Maryland, Nevada, or Wyoming, you can use Better.com, but not Ally.</p><h3>Ally vs. Quicken Loans</h3><p>Both <bi-inline-shortcode id="commerce-link" contenteditable="false" data-fields="brand,name" data-customtext="Ally" data-shouldlink="true" data-pid="5eb04fb1e3c3fb0926247c3b">Ally Financial</bi-inline-shortcode>and <a href="https://www.quickenloans.com/" target="_blank" rel="noopener">Quicken Loans</a> provide online experiences, but Quicken Loans gives you the option of working with an agent in person. Both companies let you choose between rate-and-term refinancing and cash-out refinancing.</p><p>Quicken Loans offers more variety than Ally. It has custom fixed-rate terms, ranging from eight to 30 years. Unlike Ally, it processes government-backed loans, including FHA, VA, and USDA mortgages.</p><p>Quicken Loans operates in all 50 US states, so if you live in a state Ally doesn't service, you can apply through Quicken Loans.</p><p><em>Laura Grace Tarpley is the associate editor of banking and mortgages at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.</em></p><ul class="read-more-links"><li><bi-shortcode id="related-content-module" class="mceNonEditable" data-type="more-on-refinancing-a-mortgage" data-sheetname="More on Refinancing a Mortgage">Related Content Module: More on Refinancing a Mortgage</bi-shortcode></li></ul><p><a href="https://www.businessinsider.com/personal-finance/ally-mortgage-refinance-review#comments">Join the conversation about this story »</a></p>
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