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 services and credit cards.

You can apply for personal loans, student loans and home loans at 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’re 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 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 payment 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 score requirements

Minimum of 620

Payment terms

10-, 15-, 20- and 30-year options

Average approval time

Not disclosed

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

The average customer can typically 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 do we like?

  • Free of charge: Discover keeps the process simple by taking care of all the extra fees like origination fees, closing costs and home viewing. That means you don’t have to worry about coming up with any money during your loan application process or having to roll additional costs into your loan. However, if you pay off your loan in full within 36 months, you must pay Discover for your closing costs up to $500.
  • Fixed-interest rate: In today’s rising interest rate environment, a fixed-interest rate is attractive because your rate won’t go up regardless of what happens in the economy and financial markets.
  • Flexible payment terms: Discover offers loan terms of up to 30 years, which benefits homeowners who need to stretch their financing over a long period of time. You can pay off your home equity loan over 10-, 15-, 20- and 30-year terms.

What we don’t want

  • Limited loan products: Discover offers only home equity loans and mortgage refinancing. It does not offer HELOCs, variable interest rate products, or 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 modest loan. amount owed.
  • Lower maximum loan amount: You can only get a maximum loan amount of $300,000, which may be too small for homeowners who need to finance more expensive, long-term projects, and is more limited than others. lenders offering home equity loan limits up to $3 million. .

Home equity loan options

Discover currently offers home equity loans and mortgage refinancing, but it does not offer HELOCs or mortgages. The lender also offers many different 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 up-front payments normally associated with a home equity loan. Discover does not charge any application fees, and you are not responsible for origination fees, title fees, recording fees, mortgage taxes or closing costs (unless you pay off your loan in full within 36 months, during which you must reimburse closing costs up to $500).

Plus, as a borrower, no fees mean you don’t have to make any money when you submit your application, saving you thousands of dollars right off the bat.

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 often the most important factor lenders consider when determining your interest rate — your rate will also depend on many factors such as your verifiable income, debt ratio to income, or DTI ratio, as well as how much equity you have built up in your home.


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

Discover says that if you upload your documents online (instead of sending them by mail or fax) it will speed up your processing time. You can expect to receive your funds a full four days after your loan closes, according to Discover.

Customer service

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 Discover’s loan portal to track 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 loan applications in progress: 855-361-3435
  • Funded home loans: 855-295-2193
  • General support: 855-361-3435


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