Mortgage Refinance - Hero Image

Mortgage Refinance from Discover

A better way to
refinance your first mortgage.

Low Fixed Rates | Zero Origination Fees | Great Customer Service
Refinance Options in Minutes
Refinance Options in Minutes

Apply online or over phone, fast and easy. Loan options from $35,000 to $300,000.

Not like your original Mortgage
Zero Costs at Closing

Zero application fees, zero appraisal fees and zero origination fees. Plus, low fixed rates.

Help and Support
Help on Hand 7 Days a Week

Get a loan team dedicated to processing your application.

Mortgage Refinance: Rates, Terms & Fees

Refinance your first mortgage and get the cash you need.

Interest Rates
Fixed interest rates from 6.74% APR - 10.99% APR

View APR disclosure

Loan Amounts
$35,000-$300,000
Payments
Fixed Monthly Payments
Terms
10, 15, 20 & 30 Years

Loan Payment Example

Application Fees
$0
Origination Fees
$0
Appraisal Fees
$0
Cash Required at Closing
$0
Discover Home Loans pays all closing costs incurred during the loan process, so that you don’t have to bring any cash to your loan closing. 
In the event that you decide to pay off your loan balance in full within 36 months after your loan closes, you will be required to reimburse Discover for some of the closing costs that we are paying on your behalf, not to exceed $500.00. 
Reimbursable closing costs will include all title fees, recording fees, and mortgage/transfer taxes. If you reside in Connecticut, Minnesota, New York, North Carolina, Oklahoma, or Texas you are not required to reimburse the closing costs.
See rates for all loan options. 

Calculate refinance options.

See how much you could borrow
Pay off debt & check your savings
Check your fixed rate & payment
Turn your home equity into cash

Here's what our customers are saying

Rating

“So much better than when I refinanced 7 years ago with another bank!"

Charles H., SC, 4/21/2022
Rating

“My home refinance with cash out went smoothly from start to finish.”

Linda Q., FL, 4/21/2022
Rating

“I loved being able to work the closing around our schedule.”

Jaclyn L., MO, 4/27/2022

Uses for your mortgage refinance.

Our debt consolidation customers save an average of $751 on their monthly payments!1

BEFORE

$1,2281

Monthly Payments

From credit cards & loans totaling $54,464

AFTER

$477

Fixed Monthly Payments

30 yr. term $54,464 at 9.99% APR2
(excludes taxes & insurance)

Savings of $751 per month. That's $9,012 per 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

$35,000 - $300,000 is enough money to renovate or expand your living space.

Save With Low, Fixed Rates

Get a low monthly payment and zero origination fees or cash required at closing.

Did you know?

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

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 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.

Questions about Mortgage Refinance

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A cash out refinance is when you take a portion of your home's equity out as cash when refinancing your current mortgage. While a traditional refinanced loan will only be for the amount that you owe on your existing mortgage, a cash-out refinance loan will increase the amount of the loan, allowing you to both pay off your existing mortgage and take a lump-sum payment in cash for the additional amount of the loan. When mortgage rates are low, a cash out refinance may be advantageous over other types of credit like credit card, personal loans, or HELOCs that have a variable rate.

Discover’s cash out refinance loan has a low, fixed rates that never change for the life of the loan, as well as has no cash due at closing.

 

   Learn more

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Speak with one of our Personal Bankers to get an initial idea of your eligibility, or start your application online here. Here are a few things we look for:
- Credit score of at least 620
- History of responsible credit use
- Verifiable employment and income
- Debt-to-income ratio (DTI) less than 43%

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Refinancing your home mortgage allows you to pay off your original mortgage with a new loan. Typically, people refinance their original mortgage loan for one or more reasons:

  • to earn a better interest rate,
  • to convert a variable rate to a fixed rate (or vice-versa),
  • to reduce monthly payments by extending the repayment term of the loan , or
  • to reduce interest charges paid over the life of the loan by reducing the repayment term of the loan.

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A traditional refinance loan will fully repay the outstanding balance on your current mortgage with a new loan at typically better rates or terms. A cash-out refinance does the same thing, but also allows you to take out an additional amount that you can receive as a lump-sum payment. The additional amount will be included in your new loan balance and can be used for a variety of different purposes like debt consolidation, home improvement or making a large purchase. 

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Typically, lenders will use your Combined Loan-to-Value (CLTV) ratio to understand your ability to take on new debt. To generate your CLTV on your own, follow these steps:

  • Add up the balances on all your existing home loans such as first mortgages, second mortgages or home equity lines of credit. This is your combined loan value.
  • Find the estimated value for your home. You can use an online tool, compare the sale cost of similar homes in your neighborhood, or pay for an official estimate.
  • Divide your combined loan amount by your estimated home value to calculate your current CLTV.

Once you know your current CLTV, you need to find out the maximum CLTV allowed by your cash-out refinance lender. Many lenders will cap any lending at 80% of your CLTV, but Discover Home Loans allows for loans up to 90% of CLTV. Use your lender’s maximum CLTV percentage and multiply that by your current home’s value to calculate maximum loan amount. When you subtract your existing mortgage balance from that maximum loan amount, you will see exactly how much cash can be obtained through cash-out refinance.

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Let’s use the following example to walk through calculations for cash-out refinance (you can substitute your home’s values in the calculations below or use our Refinance Calculator):

A homeowner owes $100,000 on a first-lien mortgage loan and $45,000 on a second-lien home equity loan.

The current home value is $400,000.

The combined loan amount is $100,000 + $45,000 = $145,000.

The current CLTV is $145,000 / $400,000 = 36%.

With Discover you can borrow up to 90% CLTV 0.90 x $400,000 = $360,000 could be taken out against the current value of the home.

Since you owe $145,000 on your existing loans, the maximum cash-out value you can get is $360,000 - $145,000 = $215,000. While the homeowner does not have to take out the full amount available, finding these values for your home can help you understand the limits of your loan application before you apply.

Your Guide to Home Lending

Learn more about product options, using your equity wisely, and the home equity market.

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Start your application online

or give us a call.

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  • Weekdays 8am–Midnight ET
  • Weekends 10am–6pm ET
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Start your application online or give us a call.

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  • Weekdays 8am–Midnight ET
  • Weekends 10am–6pm ET