What is a home equity loan?

Dollar-Flexible
A home equity loan allows you to borrow against the equity in your property, providing a lump sum of cash for debt consolidation, home improvements, or major expenses.
House-Equity
Home equity is the portion of your home’s value that you own outright.
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With Discover®, you could get a home equity loan with no closing costs, low fixed rates, and fixed monthly payments to help you achieve your financial goals.

Fixed interest rates

from x.xx% - x.xx% APR

How to qualify for a home equity loan?

To qualify for a Discover home equity loan, here are a few items we look for:

Credit Score of at least

680

History of responsible credit use

Verifiyable employment and income

Debt-to-Income Ratio (DTI) less than

43%

Applying is simple from start to finish

Getting the Basics
Around 1-2 Weeks
Apply online or over the phone to review your loan options, then upload required documents. We’ll confirm your initial eligibility.
Processing Your Info
Around 4 Weeks
We’ll gather third-party information about your home and then send your complete application to underwriting for a final decision.
Closing Your Loan
Around 1-2 Weeks
We’ll contact you to schedule your closing and then arrange for your loan funds to be sent to your accounts.
Loan options in minutes
Borrow up to 90% CLTV

Lock in your rate with Discover on a home equity loan between $35,000 and $300,000 (2nd Lien) up to 90% combined loan-to-value (CLTV).

Low Fixed Rates
Fixed Repayment Terms

Find the monthly payment amount that's right for your budget with fixed terms of 10, 15, 20, or 30 years.

Loan Payment Example

Help on hand
$0 Costs at Closing

Tap into your equity with $0 application fees, $0 appraisal fees, $0 origination fees, $0 processing fees, and $0 charges at closing.

Make Informed Decisions About Your Home Equity

Calculate Your Loan Amount

Estimate the amount you may be eligible to borrow with a home equity loan.

Estimate Your Rate And Monthly Payment

Enter your details into our home equity loan calculator to explore home financing options that fit in your budget.

Home Equity Loan uses

Here's an example based on our average customer who gets a home equity loan for debt consolidation:1

Want to reduce your monthly payments by hundreds of dollars? Our customers on average save $xxx a month!Potentially you could too, see details below.

Current Payments

credit cards and loans

totaling $xx,xxx

$x,xxx1

Minimum Monthly Payments

New Lower Payment

from Discover, 2nd lien, $xx,xxx

at x.xx% APR1, 30 year term

$xxx

Fixed Monthly Payment

(excludes taxes and insurance)

Keep $xxx every month - that's $xx,xxx back for the year!1

Find your low,
fixed rate

Use our Rate Calculator to find the rate and monthly payment that fits your budget.

Make it the home of your dreams.

Make Big Upgrades

Renovate or expand your living space with a loan amount and monthly payment that work for your budget.

Save With Low, Fixed Rates

Get a low monthly payment and zero costs required at closing.

Did you know?

The home equity you’ve earned can be used in a multitude of ways.

Refinance and cash out with a new rate and term.

We Have Your Needs Covered

We could refinance your original mortgage, a HELOC, or an old home equity loan.

Get a New Rate And Term

Put yourself back in control of a better financial situation. Zero costs required at closing.

Apply in
minutes

$0 Application Fees.
$0 Origination Fees.
$0 Costs Required at Closing.

Imagine what your home equity could provide.

Get Cash to Meet Your Needs

Pay the tuition of a loved one. Have the perfect wedding. Help cover healthcare bills.

Feel Secure About Your Rate

The low, fixed rate and principal payment you'll get from Discover won't ever change.

Did you know?

The home equity you’ve earned can be used in a multitude of ways.

Here’s what customers are saying about Discover Home Equity Loans

 

 

Here’s what customers are saying about Discover Home Equity Loans

Easy process and very quick to get the loan completed. Everyone I spoke with was easy to work with as well.

Lisa J., IL, 12/18/2024

Each representative that assisted with my loan, regardless of how small or big the work was, was done with exceptional care, dedication and professionalism.

Eveth R., DE, 12/15/2024

Being able to do everything online was a big plus. Everything was very straightforward and easy.

Randall S., CA, 12/11/2024

Home Equity Loan questions & answers

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A home equity loan is typically a second mortgage that lets you pull cash from your home equity. Unlike HELOCs, home equity loans come with low, fixed rates and provide a lump sum of cash instead of a variable line of credit.

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Please note: Discover Home Loans offers a home equity loan product, but does not offer HELOCs.

 

A home equity line of credit (HELOC) is a type of credit account that lets you borrow money against the value of your home. Because the money you borrow is a secured debt that uses your home as collateral, you can typically obtain a lower interest rate on a HELOC or other home equity loan than you could get for different types of consumer loans.

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There are many differences between a home equity loan vs HELOC. For example, a home equity loan typically comes with fixed rates and a lump sum of cash, while a HELOC typically comes with variable rates and a line of credit. Regardless of your choice, both a home equity loan and HELOC can help finance major projects like home renovations.

 

Discover offers home equity loan and mortgage refinance products but does not offer HELOCs.

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Several factors will affect your eligibility for a home equity loan, such as your income level, employment status, credit score, and history of making mortgage payments on time. Lenders may also consider your debt-to-income ratio (DTI)—the percentage of your monthly income that goes toward existing debts.

 

To qualify for a home equity loan from Discover, you'll need a credit score of at least 680, a history of responsible credit use, verifiable employment and income, and a DTI of 43% or less.

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When applying for a home equity loan, your lender may perform a hard credit inquiry to determine how much risk you pose as a borrower. This may have a small but negative effect on your credit score. 

 

After closing, your loan will appear as a new account on your credit report. New credit may affect your credit score. 

 

You can reduce any impact on your credit score by making timely monthly payments on your home equity loan. 

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The amount of money you can get depends on the lender and your financial circumstances. However, most lenders will only let you borrow up to 80% of the equity in your home. 

 

Depending on your situation, you can apply for a home equity loan between $35,000 and $300,000 (2nd Lien) with Discover. 

Your Home Equity Loan Guide

Find more in-depth information about home equity loans, different home equity products, and market insights.


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Start your home equity loan application online or give us a call.

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  • Weekends 10am–6pm ET

Discover Home Loans Restrictions and Details

We do not lend in IA or MD. You are not guaranteed approval. Once you apply and submit your credit and property information, we will confirm your eligibility. We don’t lend on cooperatives, condotels, investment properties, log homes, manufactured homes, mobile homes, or secondary homes. We will only originate one 1st lien mortgage per property per 12-month period. The maximum loan amount you qualify for will depend on additional factors, including type of loan, lien position, loan-to-value and your credit history. We may change rates, program terms, and conditions without notice. Discover Card accounts and other Capital One accounts (with the exception of Discover home and personal loans) may not be paid off with this home loan. All loan programs are offered by Capital One, N.A., 2500 Lake Cook Road, Riverwoods, IL 60015. NMLS ID 453156.

 

Loan Payment Example Disclosure

For example, if you borrowed $60,000 for a 20 year term at 8.86% APR, your fixed monthly payments would be $534.45.