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’re looking for a home equity loan, the website has easy-to-use calculators that can help you determine what loan size 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 of up to 30 years.

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Find out: At a glance

Home equity loan types

Home equity loan

April range

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

Credit score requirements

At least 620

Refund terms

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

Average time for approval


Homeowners with credit scores of 700 or higher will get 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 significant factor that lenders use to evaluate who whether you will pay. to repay your loan, you must have enough equity in your home (as a result of making consistent mortgage payments over the years) to qualify.

The average customer can usually borrow up to 80% of their home’s 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 your outstanding mortgage balances compared to the current assessed value of your property.

What we like

  • No fees: Discover keeps the process simple by taking care of all additional fees such as the origination fee, closing costs and home appraisal. That means you don’t have to worry about getting any cash during your loan application process or having to roll the extra costs into your loan. However, if you pay off your loan in full within 36 months, you will have to repay Discover up to $500 in closing costs.
  • Fixed interest rate: In today’s rising interest environment, a fixed interest rate is attractive because your rate will not rise regardless of 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 10-, 15-, 20- and 30-year terms.

Which 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 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 moderate amount of debt.
  • Low maximum loan amount: You can only get a maximum loan amount of $300,000, which may be too small for homeowners who want to finance more expensive, long-term projects, and is especially limited compared to other lenders that offer home equity loan limits as much as $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 range 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 taxes or closing costs (unless you pay off your loan in full within 36 months, in which case you must reimbursement of final expenses up to $500).

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

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 multiple factors such as your verifiable income, debt-to-income ratio, or DTI ratio, as well as the amount of equity you have accumulated in your home.


Once you’ve spoken with a banker, the Discover website provides a detailed checklist of required 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 you’ve collected 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 the 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’ve 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 pm ET and on weekends from 10 am to 6 pm ET.

Live phone support:

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


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