Discover: 2022 Home Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwood, Illinois that provides various types 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’re looking for a home equity loan, the site has easy-to-use calculators that can help you determine the loan amount and interest rate you can get with your personal finances. You can apply for a home loan online or by calling a banker. Discover said it offers a lower fixed annual interest rate and extends the repayment period to 30 years.

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Discovery: at a glance

Types of Home Equity Loans

home equity loan

APR range

From 7.49% to 13.99%

loan amount

$35,000 to $300,000

credit score requirements

Minimum 620

Repayment terms

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

Average approval time


Homeowners with a credit score of 700 or higher will receive the best rates on Discover home equity loans, although your credit score can be as low as 620. Although your credit score is the most important factor used by lenders to assess whether you will pay back your loan, you must also build enough equity in your home (due to consistent mortgage payments over the years) to qualify.

According to Discover, the average customer can typically borrow up to 80% of their home loan-to-value ratio, or CLTV, but in some cases, qualified borrowers can borrow up to 90% of the CLTV. Your CLTV is the ratio of all your outstanding mortgage balances to the current appraised value of your property.

what we like

  • No charge: Discover simplifies the process by handling all additional fees such as origination fees, closing fees and home appraisal fees. This means you don’t need to worry about taking out any cash during the loan application process or charging extra fees to your loan. However, if you pay off the loan in full within 36 months, you will be required to reimburse Discover for closing fees of up to $500.
  • Fixed rate: In today’s environment of rising interest rates, fixed rates are attractive because no matter what happens in the economy and financial markets, your rates won’t go up.
  • Flexible repayment terms: Discover offers loan terms of up to 30 years, which is beneficial to homeowners who need extended financing over the long term. You can repay your home equity loan in 10-, 15-, 20- and 30-year terms.

what we don’t like

  • Loan-restricted products: Discover only offers home equity loans and mortgage refinancing. It does not offer HELOCs (variable rate products) or purchase mortgages.
  • High Minimum Loan Amount: You must draw down at least $35,000 through a Discover home equity loan, which can be high for some homeowners, such as those who only need to finance small projects or consolidate modest amounts of debt.
  • Low maximum loan amount: You can only get a loan amount of up to $300,000, which may be too small for homeowners who need to finance more expensive long-term projects, and is especially limited compared to other lenders that offer home equity loan limits up to $3 million .

Home Equity Loan Options

Discover currently offers home equity loans and mortgage refinancing, but does not offer HELOCs or purchase mortgages. Lenders also offer various 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 up-front costs typically associated with a home equity loan. Discover does not charge any application fees and you are not responsible for origination, title, record, mortgage or closing fees (unless you pay off the loan in full within 36 months, in which case you must pay up to Reimbursement of $500 settlement fee).

Plus, as a borrower, being free means you don’t have to put up any money when you submit your application, saving you thousands of dollars immediately.

How to qualify

You must have a minimum credit score of at least 620 to qualify for a Discover home equity loan (though 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 interest rate will depend on a variety of factors, such as your verifiable income, debt-to-income ratio, or DTI ratio , such as and how much assets you have accumulated in your home.

getting Started

After speaking with a banker, the Discover website provides a detailed list of necessary documents to help you get started. Have the following documents ready, such as your W-2 form, bank statements, and other personal financial information. Once all the documents are collected, you can upload them using the Discover loan application portal, from which you can manage the rest of the loan process.

Discover says it will speed up your processing time if you upload your files online (rather than sending them by mail or fax). According to Discover, you can receive your funds within a full four days after the loan closes.

customer service

To apply for a home equity loan, you can call a personal banker or submit an application online through the Discover website. After setting up your online account, you can access Discover’s loan portal to track your application. Homeowners can contact customer support from 8:00 am to 12:00 pm on weekdays and 10:00 am to 6:00 pm on weekends.

Live phone support:

  • New loan applications and ongoing loan applications: 855-361-3435
  • Subsidized Home Loans: 855-295-2193
  • General Support: 855-361-3435


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