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Discover Home Equity review

No application fee and $0 closing cost home equity loans, but HELOCs aren’t available.’s rating: 2.2 / 5.0


If you need $35,000 to $200,000 in funding, Discover offers no-fee, $0 closing cost home equity loans with a range of repayment terms. However, home equity loans aren’t available in Iowa and Maryland.


Loan products offeredHome equity loan
Minimum credit score620
APR range4.15% APR - 8.99% APR (first liens)
4.15% APR - 11.99% APR (second liens)
Repayment terms10, 15, 20 and 30 Years
Loan limits$35,000 - $200,000
State availabilityNot available in: IA, MD

Discover pros and cons


  • $0 due at closing. With a Discover home equity loan, you don’t pay any closing costs or origination fees regardless of the loan amount.
  • Fully digital lending option. For those who prefer a fully digital home equity loan, you’ll complete your application digitally and upload all your documents online.
  • Over the phone support. Discover loan officers are available to help weekdays from 8 a.m. to midnight and weekends from 10 a.m. to 6 p.m.


  • No home equity lines of credit (HELOCs). Discover doesn’t offer HELOCS for borrowers looking for a revolving line of credit to tap into their home’s equity.
  • No in-person support. Discover doesn’t have physical branches you can visit. You must apply online or over the phone.
  • High minimum. You must borrow at least $35,000 with a Discover home equity loan, which may be more than you need. Other lenders go as low as $10,000.
  • No relationship discounts. Unlike many lenders, Discover doesn’t appear to offer any relationship discounts on it’s home equity loans.

What types of fees does Discover charge?

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 typeCharged?Cost
Application feesNo$0
Origination feesNo$0
Appraisal feesNo$0
Prepayment penaltyYesUp to $500 if you pay off your home equity loan balance within 36 months.
Doesn’t apply to residents of CT, MN, NY, NC, OK or TX.

Discover requirements

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:

  • Residency in any state except IA or MD
  • Two years’ history of employment
  • FICO credit score of at least 620
  • No history of bankruptcy in the past two years
  • Maximum debt-to-income ratio of 43%
  • Maximum 90% combined loan-to-value ratio (CLTV)


Be prepared to provide the following information with your application:

  • Government-issued ID
  • Social Security number
  • Most recent W-2 forms
  • Last 30 days’ pay stubs
  • Most recent federal tax returns
  • Retirement award letter if applicable
  • Your property’s estimated value
  • Current mortgage billing statement
  • Homeowner’s insurance policy declarations page
  • Flood insurance policy declarations page if applicable

How to apply for a home equity loan with Discover

To start an application for a home equity loan at Discover:

  1. Go to the Discover home loans website and select the Get started from anywhere on the page.
  2. Enter the loan information, property information, your personal information, income, date of birth, Social Security number, government information and consent to a credit check. After the credit check, you should receive a confirmation ID.
  3. Wait for a banker to contact you about the next steps.

Or, call Discover home loans at 855-361-3435 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.

What types of home equity products does Discover offer?

Discover only offers home equity loans — not HELOCs.

  • Home equity loans. Discover offers fixed-rate home equity loans with limits from $35,000 to $200,000 and term options of 10, 15, 20 and 30 years. The term length you choose and your interest rate will determine your monthly payment.

Other mortgage products Discover offers

Aside from its home equity loan product, Discover offers mortgage refinancing for those looking to reduce their interest rate and monthly payments.

  • Mortgage refinance. Allows you to replace your current mortgage with a new one that has a better rate and terms. Mortgage refinancing can be used to reduce your interest rate, lower your monthly payment and remove private mortgage insurance (PMI) when the equity in your home reaches 20%.

How Discover’s home equity products compare to other lenders

As an online credit card and financial services company, Discover’s home loan products are limited to home equity loans and mortgage refinancing only. And unlike other lenders we’ve reviewed, Discover doesn’t appear to have any rate promotions or relationship discounts to help lower your rate.

Compare home equity loan options

Compare these lenders and lender marketplaces by the type of home equity product you’re searching for, state availability and minimum credit score. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
(NMLS #1121636)
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
(NMLS #1717824)
Not available in: DE, HI, KY, MD, NY, SC, TX, UT, WV
Speedy prequalification, minimal fees and a wide range of loans and terms with this HELOC lender.
(NMLS #1136)
HELOC, Home Equity loans
Available in all states
Connect with vetted lenders quickly through this free online marketplace.

Compare up to 4 providers

Discover reviews and complaints

Discover has been accredited with the Better Business Bureau (BBB) since 1989, and has an A+ business rating. As of August 2021, the BBB has a 1.24 out of 5 customer rating from 217 customers and 1,194 complaints closed in the last three years.

Most complaints on the BBB 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.

Our verdict

Discover may be a good option if you want no application or closing fees, but watch out for poor reviews. And while competitive, its lowest APR on home equity loans isn’t as low as other lenders’ rates with discounts. It also doesn’t offer HELOCs for those looking for a revolving line of credit.

If Discover doesn’t have the home equity product you need, compare more home equity lenders to find the right one for you.


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).

Expert review

Discover’s home equity loans are best for borrowers who need $200,000 or less in funding and prefer a predictable rate. Though it’s an online bank, you’ll need to hop on the phone with a banker to complete your application.

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