Founded in 1985, Discover offers credit cards, online banking, personal loans, student loans, and home financing among other financial products.

Discover's home equity loans offer fairly low interest rates, practically zero extra fees, and high loan amounts. If you are in the market for a home equity loan then Discover is a great option to consider.

If you want to see what customers are saying about their experience then check out the Discover home equity loan reviews below.

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The Good

  • Limited Fees
  • Low Interest Rate
  • Flexible Loan Terms
  • Free Estimate

Limited Fees

Discover makes it affordable to acquire a home equity loan by eliminating a number of fees that most other lenders still include. At Discover, you will not have to pay for an—

  • Origination fee
  • Application fee
  • Appraisal fee
  • Some closing costs

In regards to the closing costs, Discover will pay for all closing costs during the loan process, however if you pay your loan off in 36 months or less then you are required to reimburse Discover for some of the closing costs, which would not exceed $500. If you plan to take at least five or more years to pay off your loan then you don't need to worry, but if you are wanting to pay off your home equity loan sooner than you may want to look into another company that does not charge a fee for early loan payoff.

Low Interest Rate

With Discover, you can expect to get a low interest rate compared to other lenders in the industry. The average interest rate range for all lenders, in the year of 2020, is about 3.00%–9.25% with the average coming in at about 5.2%. At Discover you can secure a fixed interest rate for as little as 3.99%*.

Discover's interest rates range from 3.99% up to 11.99%*. While the max interest rate is higher than the national average, select borrowers can qualify for a very low interest rate at 3.99% which is significantly lower than the industry average which, as mentioned earlier, is 5.2%.

Flexible Loan Terms

Discover's home equity loans are flexible in both the amount that you can borrow as well as the length of time that you'd like to be able to pay off the loan. With Discover you can choose a 10, 15, 20, or 30-year repayment plan.

As far as loan amount, you can borrow anywhere from $35,000 to $200,000 with a Discover home equity loan. Not all lenders will allow you borrow up to an amount as high as $200,000—if you need a larger loan amount then Discover can satisfy those needs.

Free Estimate

Discover makes it easy to get a rough estimate to help you see what your potential home equity loan may look like. To educate prospective borrowers about home equity loans, Discover's website features these helpful tools:

  • Loan amount calculator
  • Monthly payment calculator
  • Debt consolidation calculator
  • Application checklist

Use these calculators during the shopping process to help you compare rates easier.

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The Bad

  • Undisclosed Credit Score Requirement

Undisclosed Credit Score Requirement

Some home equity loan companies give a credit score range to help potential borrowers have a better idea if they even qualify for a loan. Discover loan does not give a credit score minimum and maximum threshold to help you understand if your approval chances are likely or not.

Like with any loan process, the higher your credit score the more likely you are to secure a loan with more flexible loan terms, a lower interest rate, and a higher loan amount.

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The Bottom Line

With Discover you have the trust of a nationwide company that has been around for decades and Discover's home equity loans are affordable. You'll be able to save money on your monthly payment with its competitive interest rates and lack of added fees that are typically rolled into the loan or are required as a cash-up-front payment.

Although credit score requirements are not disclosed, those with a fair credit score that is around 700 and above should be able to secure a fairly well priced home equity loan with Discover.

Make sure to check out the Discover home equity loan reviews below to hear from customers like you.

*Interest rate range current as of August 2020.

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Melissa Riviere Clarks Summit, PA

Discover does a good job with loans & savings accounts. They have good rates, website access, and customer service.

1 year ago

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