Mortgage Refinance - Hero Image

Mortgage Refinance

A better way to
refinance your first mortgage.

Refinance Options in Minutes
Apply Online in Just Minutes

Apply for a refinance on our secure website or give us a call. Loan amounts range from $35,000 to $300,000.

Not like your original Mortgage
$0 Costs at Closing

Lock in a low fixed rate on a refinance with $0 application fees, $0 appraisal fees, $0 origination fees, and $0 costs required at closing.

Help and Support
Help on Hand 7 Days a Week

Connect with a loan team dedicated to processing your application. Discover has 100% U.S. based customer service.

Mortgage Refinance: Rates, terms, and fees

Interest Rates
Fixed interest rates from x.xx% - x.xx% 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
Costs Required at Closing
$0

Find the Mortgage Refinance that works 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

Tap into equity with a Cash Out Refinance

Our debt consolidation customers erase an average of $xxx off their monthly payments!1

BEFORE

$x,xxx1

Monthly Payments

From credit cards & loans totaling $xx,xxx

AFTER

$xxx

Fixed Monthly Payments

30 yr. term $xx,xxx at x.xx% APR2
(excludes taxes & insurance)

Savings of $xxx per month. That's $xx,xxx 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

$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.

Here's what customers say about a Mortgage Refinance with Discover

...This was my first home loan and the process with Discover was easy and pleasant!

Dawn F., SC, 3/12/2024

Your people were very responsive and your website allowed me to track the progress of my loan as well as ensure I was getting you what you needed.

Carol R., NC, 3/20/2024

...I have done business with so many different financial institutions but this was by far my best experience. ...

Elizabeth O., NY, 3/20/2024

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.

Mortgage Refinance questions & answers

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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.

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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 660
- 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, homeowners can borrow up to 90% CLTV: 0.90 x $400,000 = $360,000 could be taken out against the current value of the home.

In this example, since $145,000 is owed on existing loans, the maximum cash out value possible with a Discover loan is $360,000 - $145,000 = $215,000. While borrowers do not have to take out the full amount available, finding these values can help homeowners to understand borrowing limits before applying for a loan.

Your Mortgage Refinance Guide

Is now the right time to refinance? Check these resources to decide if a mortgage refinance makes sense for you.

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Start your application online or give us a call.

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