At a Glance
Discover Financial Services, Inc., through its bank, Discover Bank, provides a range of financial services including mortgage loans, home equity loans, credit cards, checking and savings accounts, personal loans, and student loans. Its home equity loans program has been steadily growing since its launch, enabling countless customers to borrow money with their home as collateral.
Key Figures:
Loan types: Home equity, Refinance
Minimum credit score: 620
Repayment terms: 10, 15, 20 & 30 years
Pros
- Operated by well known, and trusted financial services company
- $0 application fees, $0 origination fees, $0 appraisal fees, and $0 cash due at closing
- Free home valuation
- Apply online in less than 5 minutes
Cons
Perhaps the biggest benefit to borrowing from Discover is its reputation. Although Discover is relatively new to the HEL and mortgage refinance market, it has been operating financial services under various guises since as far back as 1985 – when it launched its world-renowned Discover credit card.
How it Works
Discover’s home equity loan (HEL) program gives American homeowners in all 50 U.S. states, except IA and MD, the option of tapping into their equity to borrow money. Discover also offers home refinance programs.
The best way to determine if you qualify for a Discover home equity loan or mortgage refinance is to apply online or speak to one of the company’s personal bankers. At a minimum, Discover requires applicants to have a credit score of at least 620; history of responsible credit use; verifiable employment and income; and sufficient equity in their home.
Apply online in less than 5 minutes and track your loan status and easily upload documents online
Types of Loans
As discussed, Discover specializes in 2 types of mortgage products: Home equity loan and mortgage refinance.
Loan amounts from $35,000 - $300,000.
The loan can be used for most purposes, including home improvement, debt consolidation, paying off student loans, or funding a major expense.
Many conventional refinance lenders charge closing costs when you refinance; however, Discover offers loans with zero application fees and zero costs at closing.
A home equity loan lets you borrow a fixed amount, secured by the equity in your home, and receive your money in one lump sum. Typically, home equity loans have a fixed interest rate, fixed term and fixed monthly payment. Interest on a home equity loan may be tax deductible under certain circumstances. Consult with your tax advisor.
Loan Features
Discover’s HEL and mortgage refinance program is fairly straightforward. The structure of a Discover HEL or mortgage refinance is like home equity and mortgage refinance loans from any other lenders. The loan is secured against the borrower’s home equity. After closing, Discover transfers the borrower a lump sum. The borrower pays back principal and interest in fixed-rate monthly payments, over an agreed repayment period.
Here are a few advantages to going with Discover:
- Option of starting your application online or by calling a personal banker and get details about your loan options within minutes. Getting a no-obligation quote is easy: just answer a few questions, with no need to submit any documents.
- Each borrower is assigned a personal banker with expertise in the home equity loan application process. A personal banker is available Weekdays from 8am to midnight and Weekends from 10am to 6pm ET.
- During the application process, your dedicated loan team will provide regular updates on your progress and notify you when a closing date has been confirmed.
- The free loan amount calculator lets you see how much you can qualify for based on your home’s market value and other factors.
- Choose your loan term
Rates and Terms
Discover’s APRs fall into the same range for all its products. Because home equity loans tend to carry higher rates than refinancing in the broader market, this means Discover’s rates are relatively good for home equity loans but not as good for refinancing. However, the exact rate offered to you is determined by your credit score–so with the right financial profile, you may find a good deal with Discover.
The maximum combined loan-to-value ratio of around 90%, depending on your loan amount and credit. (i.e. your home equity cannot fall below 10% of your home’s current value). No application, origination, or appraisal fees. No cash is required at closing.
The length of time it takes to process your loan can vary.
Summary
A home equity loan or mortgage refinance should come with a competitive rate and be easy to apply for. Discover’s HEL and mortgage refinance program meets both these requirements, with a quick, streamlined application process helped along by a team of personal bankers. From a trusted credit card provider serving millions of customers, Discover’s home equity and refinance loans offer an attractive option to any homeowner looking to dig into their equity to borrow money.
Contact Discover
Discover gets mixed reviews from customers. It has an A+ rating from the Better Business Bureau. It scores low on Trustpilot. However, it should be noted that most customer complaints involve disputes about credit card charges and are not related in any way to its home equity loan and mortgage refinance offerings.
- Phone: 855-361-3435 to get a no-obligation quote from a personal banker (weekdays 8am – midnight ET). The hearing impaired should call a separate number: 888-728-3157.
- Online application: DiscoverHomeEquityLoans.com/Apply. Corporate address: Discover Home Equity Loans , 2500 Lake Cook Road Riverwoods, IL 60015.
