Discover: 2022 Home Equity Review

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

You can apply for personal loans, student loans and home loans at Discover. The Illinois-based lender offers home loans and mortgage refinancing, but does not currently offer home equity lines 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 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 has extended repayment terms up to 30 years.

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Discover: At a glance

Types of home loans

Home equity loan

APR series

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

Credit score requirements

Minimum of 620

Refund Terms

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

Average time for approval

Made unknown

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

An 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 we like

  • No fees: Discover keeps the process simple by taking care of all extra fees like the origination fee, closing costs and home appraisal. This means you don’t have to worry about coming up with any cash during your loan application process or rolling the additional costs into your loan. However, if you pay off your loan in full 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 rate 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 stretch their financing over a long period of time. You can repay your home 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 long-term projects, and is especially restrictive compared to other lenders that offer home loan limits as high as $3 million. .

Home 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 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 typically associated with a home equity loan. Discover charges no application fees, and you will not be responsible for an origination fee, title fee, recording fee, mortgage tax or closing costs (unless you pay off your loan in full within 36 months, in which case you must reimburse the closing costs up to $500).

Plus, as a borrower, no fees mean you don’t have to come up with any money when you apply, saving you thousands of dollars.

How to qualify

You must have a minimum credit score of at least 620 to qualify for a Discover home equity loan (although the lender prefers 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 will also depend on several factors such as your verifiable income, debt-to-income ratio or DTI ratio, as well as how much equity you have in built your house.

Get started

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

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

Customer service

To apply for a home loan, you can call a personal banker or submit your application online through Discover’s website. Once you’ve set up your online account, you can access Discover’s loan portal to keep track of your application. Homeowners can reach customer service on weekdays from 8:00 AM to 12:00 PM ET and on weekends from 10:00 AM to 6:00 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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