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If you need $35,000 to $300,000 in funding, Discover offers no-fee, $0 closing cost home equity loans with a range of repayment terms. However, its home equity loans aren’t available in Iowa or Maryland.
620
Minimum credit score
Not available in: IA, MD
State availability
Loan products offered | Home equity loan |
---|---|
Minimum credit score | 620 |
APR range | 4.99% to 9.99% APR (first liens) 6.49% - 12.99% APR (second liens) |
Repayment terms | 10, 15, 20 or 30 years |
Loan limits | $35,000 to $300,000 |
State availability | Not available in: IA, MD |
Review by
Katia Iervasi is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in insurance. Her writing and analysis on life, disability and health insurance has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. She holds a BA in communication from Australia's Griffith University.
Discover is not currently available on Finder
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Speedy prequalification, minimal fees and a wide range of loans and terms with this HELOC lender.
Discover’s home equity loan is best for borrowers looking to tap into their home’s equity with a lump sum loan offering even monthly payments at a fixed interest rate. With Discover, you can apply online or over the phone for a home equity loan ranging from $35,000 to $300,000 starting at a fixed 6.49% APR — but there are no in-person branches.
Like many home equity lenders, Discover’s home equity loan has no application or closing fees, which means you pay $0 out of pocket at closing. And while its rates appear to be competitive with other lenders offering home equity loans, the lowest APR on its home equity loan product isn’t as low as other lenders’ rates with discounts. Discover doesn’t offer any relationship discounts on its home equity loans.
Discover only offers home equity loans on primary residences and doesn’t offer HELOCs if you’re looking for a revolving line of credit to access your home’s equity. If Discover doesn’t have what you’re after, compare more home equity loans or HELOC lenders to find the right equity product for your needs.
Discover only offers home equity loans — not HELOCs.
To find out if you’re eligible for a Discover home loan, visit the company’s website. Basic eligibility for a mortgage with the company includes:
Discover doesn’t charge fees on its home equity loans and you pay $0 for closing costs. Closing costs generally run between 2% and 5% of a loan’s amount.
Fee type | Charged? | Cost |
---|---|---|
Application fees | No | $0 |
Origination fees | No | $0 |
Appraisal fees | No | $0 |
Prepayment penalty | Yes | Up to $500 if you pay off your home equity loan balance within 36 months. Doesn’t apply to residents of CT, MN, NC, NY, OK or TX. |
BBB rating | A+ |
---|---|
Trustpilot rating | Poor |
Customer reviews verified as of | 11 May 2022 |
Discover Financial Services has been accredited with the Better Business Bureau (BBB) since 1989, and has an A+ business rating. But customers give the company a poor rating on the BBB site, with hundreds of complaints registered on the BBB site over the past three years.
Most complaints are related to billing, collections and problems with the bank as a whole — not specifically about its home equity loans division. However, customers on other sites have complained about poor service from the home loans department, reporting a lack of communication, delayed processing and interest rates inexplicably rising after closing.
To start an application for a home equity loan at Discover:
Or, call Discover home loans at 866-219-0257 to contact a loan officer directly and apply over the phone. You also have the option of mailing, faxing, emailing or uploading your documents using Discover’s secure portal.
Be prepared to provide the following information with your application:
Aside from its home equity loan product, Discover offers mortgage refinancing for those looking to reduce their interest rate and monthly payments.
Finder's pick for fast HELOC funding
Speedy prequalification, minimal fees and a wide range of terms with this HELOC lender.
Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a Home Equity Loan, HELOC or Cash-Out Refinance.
If you selected a home equity loan or HELOC, enter your ZIP code, credit score and information about your current home to see your personalized rates.
In the Cash-Out Refinance tab, select Refinance and enter your ZIP code, credit score and other property details to see what you might qualify for.
Discover is not currently available on Finder
Have you considered Figure?
Speedy prequalification, minimal fees and a wide range of loans and terms with this HELOC lender.