Get home equity loans at a glance

  • Fixed rate or variable
  • How do I withdraw funds? Funds can be withdrawn in one lump sum
  • Origination Fee: There are no origination fees, closing fees or appraisal fees
  • Loan to-value ratio: Up to 90% of the current value of your home
  • Time to Fund: Around eight weeks

Discover is an online bank that offers a variety of lending products including loans and credit cards. These include home equity loans at fixed rates and home refinance loans.


  • Fixed APR
  • Online application
  • You may be eligible for lower credit
  • There are no appraisal or origination fees


  • Penalty for early payment
  • Longer funding time
  • Minimum loan amount of $20,000

Learn 4 Things About Discover Home Equity Loans

Discover offers home equity loans at competitive rates and flexible terms. Let’s take a look at some of the unique loan features that make it stand out from other lenders.

1. Transparent pricing

Discover doesn’t charge loan origination fees. There are no application fees or appraisal fees for the loan.

Discover is upfront about its APR fees. This could be your first lien on a house. If so, you may qualify for the lowest rates. However, most loans will be second liens which typically have slightly higher APRs.

Remember that Discover’s home equity loan APRs do not change, and are fixed rates.

An early repayment penalty is one fee you should be aware of. Discover may charge some of your closing costs if you repay your loan in less time than 36 months. If you are a resident of Connecticut, Minnesota or New York, this amount will not exceed $500.

2. There are less strict eligibility requirements

Discover does not require a minimum credit score. You will need to have a credit score of at least 620 and a ratio of less 43% or lower in order to be eligible for a Discover home equity loan. The debt-to-income ratio can be calculated by adding up all of your monthly debt payments, and then dividing it by your monthly income.

You will need to have at least 700 credit scores to be able borrow more than $150,000

Discover also requires proof of income and a history of responsible credit use. These are not mandatory requirements, and approval will not be granted if you meet them.

3. High LTV Ratio

Discover’s home equity loans are up to $300,000. However, they allow for a combined loan to value ratio of up to 90%.

The CLTV ratio is the sum of all mortgage loans. To get this number, you would add the principal mortgage amount to your home and subtract the Discover home equity loan amount from your home.

4. Apply online

Apply online for a Discover loan to your home equity by phone or online.

Online application is possible. You will be assigned a personal banking representative who can communicate with you via email, phone, or online.

Through its loan portal, you can upload any documents Discover requires. You can also download and sign any documents through this online portal to finalize your loan approval.

Is it possible to pay my Discover home equity loan off early?

Although you can pay your Discover home equity loan off early, there may be a charge.

There are four terms available from Discover: 10, 15, 20, and 30 years. You can pay your loan off in a few months, or even years ahead of schedule.

Discover may request that you repay some closing costs if your loan is paid off within three years of its closing date. The fee can’t exceed $500. However, Discover will not pass on these fees to residents of certain states like Minnesota and Texas.

Who can a Discover home equity loan be used for?

If you have a minimum of a modest amount of equity in your home, Discover’s home equity loan can be a great option for major home renovations.

Home equity loans are generally good for one-time purchases, or expenses like debt consolidation, or a home renovation project. You will know exactly how much you want to borrow.

Because the minimum credit score required for Discover’s home equity loan is 620, it may be a good option for those with lower credit scores. However, Discover home equity loans may not be right for everyone. Although Discover has a high LTV limit, the minimum loan amount is $35,000 which can be prohibitive for those who are only looking for a small amount.

How do I apply for a Discover Home Equity Loan

In just a few steps, you can apply online for a home equity loan through Discover.

These are the documents Discover suggests you have available for your application.

  • Copie of your driver’s licence
  • W-2s
  • Paycheck stubs or other proof of income
  • Copy your homeowner’s policy
  • Current mortgage statement
  • Reviewing your account information

The approval process for your home equity loan from Discover can take up to two months. However, much of that depends on how fast you submit any documentation.

Are you unsure if Discover is the right choice for you? These are some alternatives.

  • Figure This online lender provides a home equity loan (or HELOC), with a fixed interest rate.
  • KeyBank This lender offers large-sized home equity loans and HELOCs.