Discover Home Loans

Discover Home Loans Reviews

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About Discover Home Loans

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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.

Pros & Cons

  • 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


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

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.

Discover Home Loans Reviews

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    • Our moderators read all reviews to verify quality and helpfulness.
    Page 1 Reviews 0 - 10

    Reviewed June 21, 2024

    This process was unfair and disgrace. After pulling my credit from all 3 credit bureaus and asking 20 docs, I was rejected and given the reason by mail that it was due to my property type not eligible... When I called to learn more, they changed the reasons. The issue is with the condo building insurance doc. I was told that this went to the "fraud dept" and here it ended. No one contacted me asking anything. There was no fraud or anything wrong. Maybe they wanted a different doc and I misunderstood but no one followed up asking anything.

    Customer ServicePunctuality & SpeedStaff

    Reviewed June 5, 2024

    We tried to get a 2nd mortgage with Discover Home loans. We always had a good experience with their credit cards so figure why not. Well they requested more documents than I have ever seen in my life. I am self-employed and own two companies. My husband is a w2 employee. We worked at all the requested for months. They stated we were perfect for the loan. Our credit is in the 700’s. After 40 calls back and forth our banker said we looked great, she was submitting to underwriting. They denied us in about 1 day and claimed our debt to income was double what it is.

    When I requested a call I did get one but the explanation was garbage. They basically don’t really count my self-employed income but say they do but they don’t. My businesses pay my cars and other stuff much like any business owner. Both have money in their accounts. Or personal savings has money as well. Not to mention our home has about 300k in equity and we were taking nowhere near that. They wasted my time. Did a hard pull on my credit and I plan on complaining till I collapse. Horrible company!! I say let’s all get together and take them down.

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      Reviewed May 16, 2024

      Discover Home Loans are a bunch of incompetent morons. I’m an over 800 credit score with a debt to income ratio of 24%. Sent them all documents requested. Only to have to do it 10 different times. While speaking to a different person every time I called. Was extremely frustrating. Don’t waste your time with them.

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      Customer Service

      Reviewed April 20, 2024

      I provided them reams of documentation, had a hard credit pull, 700 credit score, and personal banker told me everything. Looks good. Five hours later check website saying declined and my personal banker will call... never did. Guess I will wait for the vague denial letter. Wasted my time.

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      Customer Service

      Reviewed April 5, 2024

      From application to funding (including weekends and the 3 day cooling off period) was 16 days! Yes, just 16! I only had two brief phone calls (one within an hour of applying to go over information and a second to set up for a notary to come to me to close) but otherwise everything was completed on their portal which was incredibly user friendly. I have already suggested this option to a friend who mentioned she wished there was a way to get to some of her equity. Unlike another company that would charged and financed 5,000 in fees, Discover charged me $0!

      Punctuality & SpeedStaff

      Reviewed March 8, 2024

      I applied for a Heloc with Discover home loans. What a sham! I have over 290 grand in equity in my home and was requesting 60 grand for home improvements. My credit score is 735. My income is 220 grand per year. You would think there would be no issue getting approved! WRONG!!! After 2 months of sending re-sending and re re sending many different docs and getting different responses from different account reps I was finally told yesterday all was in order. This morning received an e-mail stating that my loan was not approved!! What a total disgrace the way this company works! Take a word from someone who wasted much time, much effort and many hours of effort! Stay away at all costs!!

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      Reviewed Feb. 2, 2024

      I have been working with this company for 2 months now. They had received all the documents that they had requested from me and I was told the loan was approved then came back and stated because my husband and I only had one checking, we needed two accounts. They couldn't do the loan. We have savings and other accounts and the income was there but their requirements are two separate accounts. I'm advising to not waste your time with this company!!! Other companies can help you. :):):)

      Customer ServicePunctuality & SpeedStaff

      Reviewed Nov. 15, 2023

      My wife and I have always used Discover Credit Card and we expected the same great experience with Discover Home Loans. However, the lack of communication and clarity from them was overwhelming. Despite the difficulties, we had almost made it to the finish line when the loan officer informed us that an issue with the title needed to be resolved before the application could move forward. My wife quickly reached out to the title company we had used before and shared with them what Discover's title company was requesting. She obtained the Affidavit fairly quickly and sent it in. A few days later, we received an email stating our application had been closed.

      My wife contacted the loan originator to find out why, only to be told that the document was not approved and needed to be filed correctly. We asked for more specific details and if the matter could be escalated, but the loan originator said no, and that we had to work with our title company to resolve the issue. Here's the backstory: when we bought our house, we did not notice that my last name had an extra N in it. The title company submitted an affidavit to correct the misspelling and the document was recorded under the Texas Property Code guidelines and filed with our county. This is the same document we presented to Discover. Till this date, we still don't know what the issue is. We contacted the title company again and the county and they confirmed that the document was filed properly and under specific codes.

      Customer ServiceStaff

      Reviewed Nov. 6, 2023

      This is the most incompetent group of people on the planet. So disappointing because every experience I have had with Discover in the past has been outstanding. Apparently this is a totally different and autonomous group. They completely screwed up the escrow part of my loan and despite being given the correct information, denied that it was received (even with proof of past emails) and refused to fix it. They lied to the FTC (and shame on them for believing it) when I reported it and I have spent months trying to get this fixed. Now just waiting until I can refinance without some ridiculous penalty, which they will not even allow me to do. Stay away from Discover Home Loans at all costs!!!

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      Customer Service

      Reviewed Nov. 3, 2023

      I’ve been dealing with the processing stage for over a month now. I got in all my paperwork they wanted within the first few days. I co-signed a loan for my son’s car and they required 12 months of payments proving he was paying. I sent them 10 months letting them know he has not had the car for a full year. It was a bunch of back and forth with emails and phone calls for them to finally tell me they don’t need the statements now unless he’s had the car for at least a year. They let me know what they would include in my loan consolidation plus how much I would get in cash for home improvements. I ok’d that only for them to contact me a couple weeks later telling me they are rescinding the offer and giving me a counteroffer.

      The counteroffer was them giving me more money, but they included my son’s car and one of his school loans and no cash back. I was tired of the back and forth regarding my son’s loans and that he was paying. I opted to ok the counteroffer and my son agreed to pay me for his bills. But, a few days later they tell me they are rescinding their counteroffer and have a new counteroffer but I have to call them. So, tell me how can you go overall of someone’s debt, their finances, their home appraisal, do a background check, then decline the counteroffer that you gave?? Make it make sense!

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      Discover Home Loans