What is a home equity loan?
A home equity loan makes it possible for you to turn the equity in your home into cash in your pocket. This type of loan typically provides access to a lump sum of cash at a low, fixed rate. You pay it back over a set period of time with a fixed monthly payment.
How to qualify for a home equity loan?
To qualify for a Discover Home Equity Loan, here are few items we look for:
Credit Score of at least
680
History of responsible credit use
Verifiyable employment and income
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).
Fixed Repayment Terms
Find the monthly payment amount that's right for your budget with fixed terms of 10, 15, 20, or 30 years.
$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.
Home Equity Loan: Rates, terms, and fees
Interest Rates
|
Fixed interest rates from x.xx% - xx.xx% APR |
Loan Amounts |
$35,000-$300,000 (2nd Lien) |
Payments |
Fixed Monthly Payments |
Terms |
10, 15, 20 & 30 Years |
Application Fees |
$0 |
Origination Fees |
$0 |
Appraisal Fees |
$0 |
Costs Required at Closing |
$0 |
Find the Home Equity Loan options that work for you
See how much you could borrow
Pay off debt & check your savings
Check your fixed rate & payment
Turn your home equity into cash
Home Equity Loan uses
- Consolidate Your Debts
- Improve Your Home
- Refinance Your Mortgage
- Pay for Major Expenses
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!1 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 can 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. Cover any 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
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.
Home Equity Loan questions & answers
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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 (1st 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.
1-855-361-3435Discover 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.
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- PO Box 29029
- Phoenix, AZ 85038-9029
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Home loans made by Capital One, N.A.
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