Discover: 2022 Home Equity Review

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

With Discover, you can apply for personal loans, student loans and housing loans. 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 in your personal finances. To apply for a housing loan, you can apply online or call the banker. Discover says it offers low, fixed APRs and extends payback periods up to 30 years.

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Discover: At a glance

home loan types

House loan

april range

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

credit score requirements

Minimum 620

refund terms

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

Average time to approval


Homeowners with a credit score of 700 or higher will get the best rates for a Discover home loan, but you can qualify with a score as low as 620. While your credit score is the most important factor that lenders use to assess whether you will make payments, you must have sufficient equity in your home (as a result of making consistent mortgage payments over the years) to qualify for your loan back.

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

what do you like

  • No charge: Discover simplifies the process by taking care of all the extra fees like the initial fee, closing costs, and home appraisal. This means you don’t have to worry about finding any cash or transferring additional costs to your loan during your loan application process. However, if you pay off your loan in full within 36 months, you will have to reimburse Discover for your closing costs of up to $500.
  • Fixed interest rate: In today’s rising interest rate environment, the fixed interest rate is attractive because your rate won’t go up no matter what happens to the economy and financial markets.
  • Flexible repayment terms: Discover offers loan terms of up to 30 years that benefit homeowners who need to spread their finances over a long period of time. You can repay your housing loan with a maturity of 10, 15, 20 and 30 years.

what we don’t like

  • Limited credit products: Discover only offers home equity and mortgage refinancing. It does not offer HELOCs, which are floating rate products, or buy mortgages.
  • High minimum loan amount: You should pull out at least $35,000 with a Discover home equity loan, which can be high for some homeowners, such as those who just need financing for a small project or want to consolidate a decent amount of debt.
  • Low maximum loan amount: You can get a maximum loan of $300,000, which can be too small for homeowners who need to finance more expensive, long-term projects and is limiting, especially when compared to other lenders that offer high mortgage lines of up to $3 million. .

home loan options

Discover currently offers home equity loans and mortgage refinancing, but does not buy HELOCs or 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 covers all the prepayment fees typically associated with a home equity loan. Discover does not charge any application fees, and you will not be liable for an initial fee, title fee, registration fee, mortgage taxes or closing costs (if you do not pay off your loan in full within 36 months, then reimburse up to $500 in closing costs).

Plus, as a borrower, paying no fees means you don’t have to find any money when submitting your application, saving you thousands of dollars instantly.

how to qualify

To qualify for a Discover home loan, you must have a credit score of at least 620 (though the lender prefers 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 rate will also depend on multiple factors, such as your verifiable income, debt-to-income ratio, or DTI ratio. as well as how much equity you create in your home.

While starting

After meeting with a banker, the Discover website provides a detailed checklist of required documents to help you get started with your application. Be prepared to have the following documents, such as your Form W-2, bank statements, and other personal financial information. Once you have collected all your documents, you can upload them using the Discover loan application portal, 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 by mail or fax). According to Discover, you can expect to receive your funds in exactly four days after your loan is closed.

customer service

To apply for a home loan, you can call a personal banker or submit your application online through Discover’s website. After you create your online account, you can access Discover’s loan portal to track your application. Hosts can reach customer support between 8:00 AM and 12:00 PM ET on weekdays and between 10:00 AM and 6:00 PM ET on weekends.

Live phone support:

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


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