Discover: 2022 Home Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwoods, Ill., that offers different 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 loans and mortgage refinancing, but does not currently offer equity or HELOC lines of credit.

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If you’re looking for a home loan, the site has easy-to-use calculators that can help you determine the loan amount and interest rate you might qualify for for your personal financial situation. me. 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 up to 30 years.

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Discover: At a glance

Types of home loans

Home loans

APR . Range

From 7.49% to 13.99%

Loan amount

$35,000 to $300,000

Credit score requirements

Minimum is 620

Debt repayment terms

Option 10, 15, 20 and 30 years

Average time to approval


Homeowners with a credit score of 700 or higher will get the best rates on a home loan at Discover, although you may qualify with scores as low as 620. Even though your credit score is The most important factor that lenders use to evaluate whether you will pay or not pay back your loan, you must also have enough equity accumulated in your home (as a result of the regular mortgage payments over several years) to qualify.

The average customer can typically borrow up to 80% of their home’s combined loan-to-value ratio, or CLTV rate, but qualified borrowers can borrow up to 90% CLTV in some case, according to Discover. Your CLTV is the ratio of all your outstanding mortgage balances to the current assessed value of your property.

What we like

  • Free: Discover makes the process simple by taking care of all the extras like start-up fees, closing costs, and home appraisals. That means you don’t need to worry about having any cash in your loan application process or having to pay additional costs to your loan. However, if you pay off your loan within 36 months, you will be required to repay Discover for closing costs of up to $500.
  • Fixed interest rate: In today’s rising interest rate environment, fixed interest rates are attractive because your interest rates won’t rise no matter what happens to the economy and financial markets.
  • Flexible repayment terms: Discover offers loan terms of up to 30 years, which is beneficial for homeowners who need to stretch their finances 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 loans and mortgage refinancing. It does not offer HELOCs, which are variable-rate products, or purchase mortgages.
  • High minimum loan amount: You must withdraw at least $35,000 with a Discover home loan, which can be high for some homeowners, such as those just needing to finance a small project or to consolidate a debt. medium.
  • Low maximum loan amount: You can only borrow up to $300,000, which may be too small for homeowners who need to finance long-term projects, more expensive and especially limited compared to lenders Others offer home loan limits as high as $3 million. .

Home loan options

Discover currently offers home loans and mortgage refinancing, but does not offer HELOC or purchase mortgages. Lenders also offer many other types of loans such as personal loans and credit cards.


One of the benefits of a Discover home equity loan is that it handles all of the upfront fees typically associated with a home equity loan. Discover does not charge any application fees, and you will not be responsible for initial fees, ownership fees, recording fees, mortgage taxes, or closing costs (unless you pay off your loan within 36 months). month, in which case you must reimburse the closing costs up to $500).

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

How to qualify

You must have a minimum credit score of at least 620 to qualify for a home loan at Discover (although lenders want a score of 700 or higher). In addition to your credit score – often the most important factor a lender considers when determining your interest rate – your interest rate will also depend on many factors such as verifiable income, interest rate debt-to-income or DTI ratio, as well as how much equity you have built in your home.


After you’ve spoken with the banker, the Discover website provides a detailed checklist of the 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’ve gathered all of your documents, you can upload them using the Discover loan app portal, from where you can manage the rest of the loan process.

Discover says that if you upload your documents online (instead of mailing or faxing) it speeds up your processing times. According to Discover.

Customer service

To apply for a home loan, you can call your personal banker or submit an application online through Discover’s website. Once you’ve set up your online account, you can visit Discover’s loan portal to track your application. Hosts can contact customer support on weekdays from 8 a.m. to 12 a.m. ET and on weekends from 10 a.m. to 6 p.m. ET.

Direct phone support:

  • New loan application and loan application in progress: 855-361-3435
  • Sponsored Home Loans: 855-295-2193
  • General support: 855-361-3435


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