Discover: 2022 Home Equity Review

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

You can apply for personal loans, student loans and home loans with Discover. 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 are looking for a home equity loan, the website has easy-to-use calculators that can help you determine what loan amount and interest rate you may qualify for in 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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Find out: At a glance

Types of home loans

Home equity loans

APR range

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

Credit score requirements

620 minimum

Repayment terms

10, 15, 20 and 30 year options

Average time to approval

Not disclosed

Homeowners with credit scores of 700 or higher will receive the best rates for a Discover home equity loan, although you can qualify with a score as low as 620. Although the Your credit is the most significant factor that lenders use to evaluate whether you will pay. to repay your loan, you must also have enough equity built up in your home (as a result of making consistent mortgage payments over the years) in order to qualify.

An average customer can usually borrow up to 80% of their home’s combined loan-to-value ratio, or CLTV ratio, but qualified borrowers can borrow up to 90% CLTV in some cases, according to Discover. Your CLTV is the ratio of all your outstanding mortgage balances compared to the current appraised value of your property.

What we love

  • No fees: Discover keeps the process simple by taking care of all the extra fees like the origination fee, closing costs and home appraisal. This means you don’t have to worry about running out of cash during your loan application process or having to incur additional costs in your loan. However, if you pay off your entire loan within 36 months, you will be required to reimburse Discover for your closing costs up to $500.
  • Fixed interest rate: In today’s rising interest environment, a fixed interest rate is attractive because your rate will not increase no matter what happens to the economy and financial markets.
  • Flexible repayment terms: Discover offers loan terms of up to 30 years, which benefits homeowners who need to extend their financing over a long period of time. You can repay your 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 interest rate products, or purchase mortgages.
  • High minimum loan amount: You must withdraw at least $35,000 with a Discover home equity loan, which can be high for some homeowners, such as those who only need financing for a small project or to consolidate a moderate 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 and long-term projects, and is especially limited compared to other lenders that offer limits of home equity loans up to $3 million. .

Home equity loan options

Discover currently offers home equity loans and mortgage refinancing, but does not offer HELOCs or purchase mortgages. The lender also offers a wide variety 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 takes care of all the upfront fees that are typically associated with a home equity loan. Discover does not charge any application fees, and you will not be responsible for any origination fees, title fees, registration fees, mortgage taxes or closing costs (unless you pay off your entire loan within 36 months, in which case you must reimburse closing costs up to $500).

Plus, as a borrower, no fees mean you don’t have to come up with cash when you submit your application, saving you thousands of dollars right away.

How to qualify

You must have a minimum credit score of at least 620 to qualify for a Discover home equity loan (although lenders prefer to see a score of 700 or higher). In addition to your credit score — which is typically the most important factor lenders consider when determining your interest rate — your rate also depends on multiple factors such as your verifiable income, the -debt to income ratio, or DTI ratio, as well as how much equity you have built up in your home.

Let’s start

Once you’ve spoken with a banker, the Discover website provides a detailed checklist of documents needed to help you start your application. Be prepared to have the following documentation such as your Form W-2, bank statements and other personal financial information. Once you have all your documents gathered, you can upload them using the Discover loan application portal, from which you can manage the rest of the loan process.

Discover says that uploading your documents online (rather than mailing or faxing them) will speed up your processing time. You can expect to receive your funds in full four days after your loan closes, according to Discover.

Consumer Services

To apply for a home equity loan, you can call a personal banker or submit your application online through the Discover website. Once you set up your online account, you can access the Discover loan portal to keep track of your application. Homeowners can reach customer support on weekdays from 8 am to 12 am ET and on weekends from 10 am to 6 pm ET.

Live phone support:

  • New loan applications and ongoing loan applications: 855-361-3435
  • Funded home loans: 855-295-2193
  • General support: 855-361-3435


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