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.
|home equity loan||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, or 20 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—up to 100%||No||Possibly yes—up to 100%||Possibly yes—up to 100%|
|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||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.