Mortgage Refinance - Hero Image

Mortgage Refinance from Discover

A better way to
refinance.

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 $200,000.

Not like your original Mortgage
Not Like Your Original Mortgage

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

Help and Support
Help and Support 7 Days a Week

Get your own personal banker and a loan team dedicated to processing your application.

Rates, Terms & Fees

Feel secure with the same fixed rate and payment each month.

Interest Rates

Fixed interest rates from 4.15% - 11.99% APR
View APR disclosure

Loan Amounts
$35,000-$200,000
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.

Use our calculators & see what you think

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 professional, prompt, and helpful at every step. This was a great opportunity to refinance our mortgage without any extra costs. ”

Caassara B, 01/07/20
Rating

“In 30 years of buying/selling/refi, this was, BY FAR, the easiest and smoothest transaction I’ve ever been a part of!”

Julie H, 02/03/20
Rating

“Thank you so much for your help. It was a wonderful experience…I always felt like a unique and valuable customer.”

Fanny M, 02/19/20

One loan for multiple goals

Our debt consolidation customers save an average of $697 on their monthly payments!

Payment Comparison Example
BEFORE

$1,023

Monthly Payments

From credit cards & loans totaling $49,057

AFTER

$326

Fixed Monthly Payments

30 yr. term $49,057 at 6.99% APR
(excludes taxes & insurance)

Savings of $697 per month. That's $8,367 per year!

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 - $200,000 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.

Get a Potential Tax Deduction

Potentially deduct your loan’s interest on your taxes when you improve your home (consult your tax advisor to see if you qualify).

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. Make a major purchase. Have the perfect wedding.

Healthcare Bills Covered

Use your equity to relieve some financial stress so you can focus on your health.

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.

Frequently Asked Questions

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A mortgage refinance allows you to obtain a new mortgage loan replacing your current mortgage. At times when mortgage rates are low, you may want to consider a refinance to lower your rate so that you are paying less money over the life of your mortgage. You can also choose to extend or shorten your current loan term with your new loan depending upon your personal goals. You may also be able to take cash out of your equity when you refinance to use for a variety of purposes including home improvement, debt consolidation, or paying for major expenses or purchases. Many conventional refinance lenders charge closing costs when you refinance; however, Discover offers loans with zero application fees and zero cash due at closing.

 

   Learn more

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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