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finder.com’s rating: 2.2 / 5.0
★★★★★
If you need $200,000 or less in funding, Discover offers home equity loans in a range of repayment terms — and charges nothing in closing costs. Though it’s a national bank, its loans aren’t available in Iowa, Maryland and Texas.
Loan products offered | Home Equity |
---|---|
Minimum credit score | 620 for equity loans |
State availability | Not available in: IA, MD, TX |
The lender has 10-, 12-, 15-, 20- and 30-year home equity loans, while many competitors cap their terms at 15 years. As an online bank, it can afford to offer rates that start at an aggressive 4.99% — well below the national average.
One of Discover‘s major selling points is that every applicant has the support of a personal banker. Along with answering any questions, your banker takes the time to understand your financial situation and walk you through the application process.
You must also be planning on living in the home for at least 36 months after taking out the loan.
The relatively low credit score and high loan-to-value ratio make Discover‘s home equity loans accessible for a wider range of borrowers.
Discover has been accredited with the Better Business Bureau since 1989, and holds an A+ rating for its services and operation. The BBB has recorded 877 complaints in the last three years, most of which were related to billing, collections and problems with the product or service. Customers gave Discover a 1.5-star rating based on 70 reviews. However, it’s worth pointing out that these reviews and complaints are about Discover Bank as a whole — and they’re about more than its home equity loans division.
Across other consumer forums, customers praise the personalized process, competitive interest rates, and lack of closing costs. Some said the path from application to closing can be as quick as 30 to 45 days, but Discover promises nothing on its website.
With Discover, every applicant is assigned to a personal banker. The lender stands out for these reasons, too:
You can start your application online by answering a few questions about yourself and the property. Then, you’ll be connected to a banker to complete the process.
Get the ball rolling by following these steps:
Self-employed? You can submit a profit and loss and balance sheet statement instead of pay stubs.
Monitor your home equity loan with these tips:
Register for an online account. Your welcome letter will outline the steps for setting up an online account. You’ll need your loan number, the ZIP code of the property and the last four digits of your Social Security number. Once the account is set up, you can view statements, manage payments and download tax documents.
Make timely payments. Skirt late fees by choosing a payment method that suits you. These are the options:
Contact customer service. Questions? You can reach the team by:
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We analyze top home loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, product selection and borrower experience.
Read the full methodology of how we rate home loan providers.
Review by
Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).