Discover: 2022 Home Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwoods, Illinois, that offers a variety of mortgages, as well as banking and credit card services.

You can apply for personal loans, student loans and home loans with Discover. Illinois-based lenders offer home loans and mortgage financing, but do 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 an easy-to-use calculator that can help you figure out the loan amount and interest rate you can afford for your specific financial situation. You can apply online or call a bank to apply for a loan. Discover said 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 Loans

home loan

APR price

From 7.49% to 13.99%

Loan amount

$35,000 to $300,000

Credit requirements

620 minimum

Refund Terms

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

Average time to get approved


Homeowners with a credit score of 700 or higher will get the best rate for a Discover home equity loan, although you can get a score as low as 620. To refinance your mortgage, you must have enough equity in your home (the result of regular mortgage payments over the years) to qualify.

The average consumer can typically borrow up to 80% of their home’s loan-to-value ratio, or CLTV ratio, while qualified borrowers can borrow up to 90% % CLTV in some cases, according to Discover. Your CLTV is the ratio of your total unsecured loan amount to your current home value.

What we like

  • No charge: Discover keeps it simple by taking care of all the extra costs like origination fees, closing costs and home appraisals. This means you don’t have to worry about getting cash during the loan application process or having to roll over the extra money from your loan. However, if you pay off your loan in full within 36 months, you must pay Discover up to $500 in closing costs.
  • Fixed rate: In today’s rising interest rate environment, fixed interest rates are attractive because your rate won’t go up regardless of what happens in the economy and stock market.
  • Flexible Refund Terms: Discover offers loan terms of up to 30 years, which is useful for homeowners who need to stretch their financing over the long term. You can repay your home loan in terms of 10, 15, 20 and 30 years.

What we don’t like

  • Limited loan products: Discover offers home equity loans and mortgage financing only. We do not offer HELOCs, which are variable interest rate products, or mortgage purchases.
  • Minimum loan amount: You must draw down at least $35,000 with a Discover home loan, which may be higher for some homeowners, such as those who only need financing for a small project or to strengthen their home. average debt.
  • Minimum 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 long-term and more expensive projects, and is especially limiting when compared to other lenders. -other funds that offer a loan limit equal to $3 million. .

Home Loan Options

Discover currently offers home loans and home equity financing, but does not offer HELOCs or mortgage purchases. Lenders also offer other types of loans such as personal loans and credit cards.


One of the benefits of a Discover home loan is that it takes care of all the fees that are usually associated with a home loan. Discover does not charge an application fee, and you will not be responsible for any origination fees, explanation fees, registration fees, mortgage taxes, or closing fees (unless you pay off your loan in full within 36 month, so you must cover closing costs up to $500).

Plus, as a borrower, no fees mean you don’t have to look for money 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 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 an interest rate — the rate will also depend on a number of factors. yours 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.

To begin

After you’ve spoken with the bank, the Discover website provides a list of necessary documents to help you start your application. Be prepared to have the following documents such as your Form W-2, bank statements and other personal financial information. Once all your documents are gathered, you can upload them through the Discover loan application portal, where you can manage the rest of the loan process.

Discover says that uploading your documents online (instead of sending them via email or fax) will speed up your processing time. You can expect to receive your money within four days of closing your loan, according to Discover.

customer service

If you are applying for a home loan, you can call a personal bank or submit your application online through the Discover website. Once you’ve set up your account online, you can log into the Discover loan portal to track your application. Homeowners can reach customer support on weekdays from 8am to 12am ET and on weekends from 10am to 6pm ET .

Live phone support:

  • New Loan Applications and Loan Applications in Progress: 855-361-3435
  • Home Loans: 855-295-2193
  • General Support: 855-361-3435


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