Discover: 2022 Home Equity Review

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

You can apply for personal loans, student loans and home loans through 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 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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Find out: at a glance

Types of home equity loans

Home Equity Loans

APR range

7.49% to 13.99%

Loan amount

$35,000 to $300,000

Credit score requirements

620 minimum

Payment terms

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

Average time to approval


Homeowners with a credit score of 700 or higher will receive the best rates for a Discover home equity loan, although you may qualify with a score below 620. However, your credit score is the most important factor that lenders use to assess whether you will pay. To repay your loan, you must have enough equity built up in your home to qualify (as a result of making consistent mortgage payments over the years).

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 of your outstanding mortgage balances to the current appraised value of your property.

what we like

  • No charge: Discover keeps the process simple by taking care of all the extra fees like origination fees, closing costs and home appraisals. This means you don’t need to worry about coming up with any cash or rolling extra costs into your loan during your loan application process. 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 environment, a fixed-interest rate is attractive because your rate doesn’t rise regardless of what happens in 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 longer period of time. You can repay your home equity loan over 10-, 15-, 20- and 30-year terms.

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.
  • Higher Minimum Loan Amount: You must withdraw at least $35,000 with a Discover home equity loan, which may be higher for some homeowners, such as those who only need financing for a small project or to consolidate a moderate amount of debt.
  • Minimum 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 fund more expensive, long-term projects, and is especially limited compared to other lenders that offer home equity loan limits of up to $3 million. .

Home equity loan options

Discover currently offers home equity loans and mortgage refinancing, but it does not buy HELOCs or mortgages. The lender also offers 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 usually associated with a home equity loan. Discover charges no 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, in which case you must reimburse up to $500 in closing costs do).

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

How to qualify

To qualify for a Discover home equity loan you must have a minimum credit score of at least 620 (although lenders prefer to see 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 several factors, such as your certified income, debt-to-income ratio, or DTI ratio. Also how much equity you have built in your home.

getting started

Once you’ve spoken with a banker, the Discover website provides a detailed checklist of the documents you need to help you start your application. Be prepared to receive the following documents, such as your Form W-2, bank statements and other personal financial information. Once you have 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 it will speed up your processing time if you upload your documents online (rather than sending them via mail or fax). According to Discover, you can expect to receive your funds four days after your loan closes.

Customer service

To apply for a home equity 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 support on weekdays from 8 am to 12 pm 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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