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Home Equity Loans

Understand Your Loan Options

Whether you’re planning to make home improvements or repairs, pay down high-interest debt, finance a major purchase or cover unexpected expenses, more than one type of loan could work for your situation. This helpful chart gives you some basic facts about the types of products that can help you achieve your goals and, of course, your Personal Banker will be happy to speak with you and help you find the right loan.

Ranges for loan amount and terms for home equity loans and personal loans are based on Discover offerings. Ranges for home equity line of credit and cash out refinance loans are based on common competitor offerings.

Discover Home Equity Loans personal loan home equity line of credit cash-out refinance loan
How much money can I borrow? $35,000—$150,000¹ $2,500—$35,000 $20,000+ Varies by lender
How long can I take to repay the loan? 10, 12, 15, 20, or 30 years 3-7 years Variable; up to 10 years to withdraw funds, up to 20 years to repay Up to 30 years
Will my interest rate or monthly payments go up over time? No—rates and payments are fixed for the life of the loan No—rates and payments are fixed for the life of the loan Possibly—rates and payments are variable and can increase over the life of the loan Depends on whether you choose a fixed— or adjustable— rate (ARM) loan
Can I deduct my interest payments on my taxes?² Possibly yes (consult your tax advisor) No Possibly yes (consult your tax advisor) Possibly yes (consult your tax advisor)
Do I need to provide any collateral? Yes—the loan is secured by the value of the equity in your home No Yes—the loan is secured by the value of the equity in your home Yes—the loan is secured by the value of your home
How can I get my money? All at once after closing, electronically or by check All at once after closing, electronically or by check Withdraw what you need when you need it by check and/or debit card All at once at closing, electronically or by check
Does Discover offer this product? Yes, call 1-855-361-3435 for more information, or start your application online here Yes, view Discover Personal Loans online for more information No, not at this time No, not at this time
¹Subject to a review of your financial and property information.
²The interest of any portion of credit greater than the fair market value of your property may not be tax deductible for Federal income tax purposes. You should consult your tax advisor regarding the tax deductibility of mortgage interest and charges.

 

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