Discover: 2022 Home Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwoods, Ill., that offers a variety of loans as well as banking and credit cards.

With Discover, you can apply for personal loans, student loans, and home loans. The Illinois-based lender offers home equity loans and mortgage refinancing, but does not currently offer home equity lines of credit or HELOCs.

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If you’re looking for a home loan, the site has easy-to-use calculators that can help you determine what loan amount and interest rate you may qualify for based on your personal financial situation. You can apply online or call a banker to apply for a home loan. Discover says it offers low, fixed APRs and extended repayment terms of up to 30 years.

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Discover: at a glance

Types of home equity loans

Home equity loan

APR range

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

Credit rating requirements

At least 620

Repayment deadlines

10, 15, 20 and 30 year options

Average approval time


Homeowners with a credit score of 700 or higher will get the best rates on a Discover home loan, although you can qualify for a score of 620. Although your credit score is the most important factor that lenders use to judge whether you will pay. to pay off the loan, you must also have enough equity in your home (through consistent mortgage payments over the years) to qualify.

According to Discover, the average customer can typically borrow up to 80% of the total loan-to-value ratio, or CLTV ratio, but qualified borrowers can borrow up to 90% CLTV in some cases. Your CLTV is the ratio of all of your outstanding mortgage balances to the current appraised value of your property.

What we like

  • Free of charge: Discover makes the process easy by taking care of all the extra fees like origination fees, closing costs and home appraisals. This means you don’t have to worry about having to come up with the money during the loan application process or factoring in extra costs to the loan. However, if you pay off the loan in full within 36 months, you will be required to reimburse Discover up to $500 in closing costs.
  • Fixed interest rate: In today’s rising interest environment, a fixed rate is attractive because your rate won’t go up regardless of what happens to the economy and financial markets.
  • Flexible repayment terms: Discover offers loan terms of up to 30 years, which is beneficial for homeowners who need to extend their financing over a longer period of time. You can repay the home equity loan in terms of 10, 15, 20 and 30 years.

What we don’t like

  • Limited loan products: Discover only offers home equity loans and mortgage refinancing. It does not offer HELOCs, which are variable rate products, or purchase mortgages.
  • High minimum loan amount: You must withdraw at least $35,000 with a Discover home equity loan, which may be high for some homeowners, such as those who only need financing for a small project or to consolidate a small amount of debt.
  • Low maximum loan amount: You can only take out a maximum loan amount of $300,000, which may be too small for homeowners who need to finance more expensive long-term projects, and it’s especially restrictive compared to other lenders that offer home loan limits of up to $3 million. .

Home equity loan options

Discover currently offers home equity loans and mortgage refinancing, but it does not offer HELOCs or purchase mortgages. The lender also offers a wide range of other types of loans, such as personal loans and credit cards.


One of the benefits of a Discover home equity loan is that it covers all the upfront fees typically associated with a home equity loan. Discover doesn’t charge any application fees, and you’re not responsible for fees, title, recording fees, mortgage taxes, or closing costs (unless you pay off the loan in full within 36 months, in which case you must reimburse closing costs up to $500).

Plus, as a borrower, free means you don’t have to look for money when you apply, saving you thousands of dollars right away.

How to qualify

To qualify for a Discover home equity loan, you must have a credit score of at least 620 (although the lender prefers a score of 700 or higher). In addition to your credit score, which is usually the most important factor lenders consider when determining your interest rate, your rate will also depend on a number of factors, such as your verifiable income, debt-to-income ratio, or DTI ratio. as well as how much equity you have built up in your home.

Getting started

Once you’ve spoken with a banker, Discover offers a detailed checklist of required documents to help you get started with your application. Be prepared to receive such documentation as W-2 forms, bank statements, and other personal financial information. Once you’ve gathered all your documents, you can upload them through the Discover loan application portal, from where you can manage the rest of the loan process.

Discover says that uploading documents online (instead of sending them by mail or fax) will speed up processing times. According to Discover, you can expect to receive your funds in full four days after your loan closes.

Customer service

To apply for a home loan, you can call a personal banker or apply online through the Discover website. Once you’ve created your online account, you can access the Discover Loan Portal to keep track of your application. Homeowners can contact customer support on weekdays from 8:00 a.m. to 12:00 p.m. ET and on weekends from 10:00 a.m. to 6:00 p.m. ET.

Live phone support:

  • New loan applications and loan applications for review: 855-361-3435
  • Funded Home Loans: 855-295-2193
  • General Support: 855-361-3435


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