Discover Home Loans

Discover Home Loans

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Written by Taylor Sansano
Edited by Jon Bortin

About Discover Home Loans

This profile has not been claimed by the company. See reviews below to learn more or submit your own review.

Discover is a well-known and well-regarded banking and credit company that offers refinance loans and home equity loans. Discover does not offer purchase loans, so it’s only available for current homeowners—not new buyers. Loan amounts range from $35,000 to $300,000, with fixed rates and no origination fees.


  • No money due at closing
  • Fixed rates and payments
  • 10-, 15-, 20- and 30-year terms
  • Customer service seven days a week


  • Limited loan products
  • Loan amounts only up to $300,000

Bottom Line

Discover provides two home loan options for existing homeowners: refinancing and home equity loans. There are no application, appraisal or origination fees. You’ll need a credit score of at least 620 and a debt-to-income ratio less than 43% to qualify. You can apply online or over the phone with Discover.


Discover only offers fixed-rate loans, so if you are looking to refinance to an adjustable-rate mortgage, you’ll need to look for another lender. The main benefit of a fixed-rate loan is that your monthly mortgage payment will never increase throughout the lifetime of the loan.

Discover publishes annual percentage rate (APR) ranges for both its refinance and home equity loans. At the time of publishing, the APR ranges for both home equity loans and refinancing are 5.99% - 12.99%.

According to the company, the APR is based on factors such as your creditworthiness, property information including how much equity is left after the loan is disbursed and the loan amount.

Application process

Borrowers can apply for a loan with Discover online or by phone. The online process is simple, with only a few steps to complete. You’ll need to provide your address, Social Security number, income information and other personal information so make sure you have that information on hand. Discover doesn’t offer an official pre-qualification step.

After getting approved, you can easily upload the required documents through Discover’s digital file system and track your application through a customer portal. This step typically takes between one to two weeks. Its underwriting department will take another three to four weeks to make its final decision.

Once you’re approved, closing takes between one and two weeks. Jaclyn from Missouri said Discover made closing convenient, noting, “I loved being able to work the closing around our schedule.”

Discover Home Loans application features

Online application
Mobile document upload
Physical branchesX
Publishes minimum rate on website
Rate lock30 to 60 days
Pre-qualification (no hard credit pull)X
Certified approval letterX

Loan types

Discover Home Loans offers only refinance loans and home equity loans. Loan amounts from Discover range from $35,000 to $300,000 and have a variety of repayment terms.


Discover Home Loans offers a fixed-rate refinancing loan that comes with no closing costs or appraisal, application, or origination fees. You can refinance with Discover to get cash out of your equity, get a lower rate, convert to a fixed-rate loan or change the loan term.

Refinancing is a good option when interest rates are low so you can save money on interest over the length of the loan.

Home equity loans

Discover home equity loans allow customers to borrow up to $300,000 in one lump sum, secured by their home equity. As with its refinance loans, it is a fixed-rate loan and there are no closing costs or other fees. Discover home equity loans can be used for a variety of purposes including debt consolidation, home repairs and paying for major expenses.

A home equity loan is a good option when you need extra cash and want a fixed-rate payment. However, be aware you're using your house as collateral and you could lose your home if you don't make the payments.


Discover requires a 620 credit score and a debt-to-income (DTI) ratio less than 43% to qualify for a refinance or home equity loan. The property securing the loan must be a single-family home, condo, town home or planned unit development; investment properties, manufactured homes and properties over 20 acres are not eligible.

Discover also requires verifiable employment and income. Based on your income, debts, credit score and other factors, the company determines how much you can borrow and your rate.

For information about other loan types besides refinance and home equity loans, read our guides on FHA, VA and USDA loans.

Costs and fees

The overall cost of your loan depends on the amount you borrow, your APR and your repayment term. Since there are no fees attached to these loans, those will not be part of your balance. Additionally, Discover Home Loans pays all closing costs incurred during the loan process, which means you aren’t required to bring any cash to closing.

Note that if you pay off your loan balance in full within 36 months after taking out your loan, you will be required to reimburse Discover up to $500 for closing costs, including title fees, recording fees and mortgage and transfer taxes. Residents of certain states are exempt from this reimbursement requirement.


What is Discover Home Loans?

Discover Home Loans is a lending branch of the financial services company Discover, one of the biggest credit card issuers in the United States, offering refinancing and home equity loans with no closing costs.

Is Discover Home Loans a good choice?

Discover Home Loans can be a good option if you are looking to refinance your existing mortgage or take out a home equity loan. Although there are no closing costs, loans amounts are capped at $300,000 and you cannot check your rate without a hard credit inquiry. So, if you're looking for a larger loan amount or prefer a soft credit check (which does not affect your credit score), you'll need to choose another lender.

Where is Discover Home Loans available?

Discover Home Loans is available to borrowers in all U.S. states except Iowa and Maryland. It is not available in any of the U.S. territories.

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Rated with 1 star
Verified Reviewer
Original review: Nov. 29, 2022

We had a check for our roof replacement from our insurance company. Since it was over ten thousand dollars we were told to sign and mail it to loss draft at Discover. It has been almost a month since we sent it to them. They have sent us about 1/3 of our money and the new roof has been on our house now for 3 weeks. We had to pay the roofers out of our pocket 14,000 since Discover is not sending us our insurance money. We have never been late on a payment and owe only about 130,000 on a 650,000 home. Fortunately we have the money to pay the roofers out of pocket. But would never recommend using them for a mortgage. There are no local offices and they appear to do as they please on their own time frame. Use someone local. I'm going to now. Don't care what anyone says these people are rude and drag their feet. Switching banks or just paying them off and done with them. Will never use anything from them again!!

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Discover Home Loans Company Information

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Discover Home Loans