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Discover Review
Discover Review
July 30, 2021 / Nadav Shemer
Discover Review
July 30, 2021 / Nadav Shemer

Discover Financial Services, Inc., through its bank, Discover Bank, provides a range of financial services including mortgage loans, home equity loans, credit cards, checking and savings accounts, personal loans, and student loans. Its home equity loans program has been steadily growing since its launch, enabling countless customers to borrow money with their home as collateral.

How it Works

Discover’s home equity loan (HEL) program gives American homeowners in all 50 U.S. states except IA and MD the option of tapping into their equity to borrow money. Discover also offers traditional purchase mortgages and it offers its HEL and home refinance programs.

The best way to find out if you qualify for a Discover mortgage or home equity loan or mortgage refinance is to apply online or speak to one of the company’s personal bankers. At a minimum, Discover requires applicants to have a credit score of at least 620; history of responsible credit use; verifiable employment and income; and sufficient equity in your their home.

A Discover loan or mortgage refinance offers many benefits over a personal loan from Discover or another lender. Because a mortgage or home equity loan or mortgage refinance is a secured debt, the interest rate is virtually always lower than for a credit card or other type of unsecured debt. Moreover, HELs and mortgage refinances may offer potential tax deductions on interest payments in certain instances if the funds from these loans are used for home improvement. Consult your tax advisor.

Pros and Cons


  • Mortgage, Home equity loan and mortgage refinance specialist
  • Operated by well known, and trusted financial services company
  • Open to residents of all states except IA and MD
  • $0 application fees, $0 origination fees, $0 appraisal fees, and $0 cash due at closing
  • Apply online in less than 5 minutes and track your loan status and easily upload documents online


  • No home purchase option
  • No physical branches

Perhaps the biggest benefit to borrowing from Discover is its reputation. Although Discover is relatively new to the HEL and mortgage refinance market, it has been operating financial services under various guises since as far back as 1985 – when it launched its world-renowned Discover credit card.

Types of Loans

As discussed, Discover specializes in three types of mortgage products: Purchase, the home equity loan and mortgage refinance.

Here a few key numbers to know about before applying for a Discover HEL:

Loan amounts from $35,000 - $300,000.

Loan can be used for most purposes, including home improvement, debt consolidation, paying off student loans, or funding a major expense.

Maximum combined loan to value ratio of around 90%, depending on your loan amount and credit. (i.e. your home equity cannot fall below 10% of your home’s current value).

No application, origination, or appraisal fees.

No cash required at closing.

Length of time it takes to process your loan can vary.

Loan Features

Discover’s HEL and mortgage refinance program is fairly straightforward. The structure of a Discover HEL or mortgage refinance is like home equity and mortgage refinance loans from any other lenders. The loan is secured against the borrower’s home equity. After closing, Discover transfers the borrower a lump sum. The borrower pays back principal and interest in fixed-rate monthly payments, over an agreed repayment period.

Here are a few advantages to going with Discover:

  • Option of starting your application online or by calling a personal banker. Getting a no-obligation quote is easy: just answer a few questions, with no need to submit any documents.
  • Each borrower is assigned a personal banker with expertise in the home equity loan application process. A personal banker is available Weekdays from 8am to midnight and Weekends from 10am to 6pm ET.
  • During the application process, your dedicated loan team will provide regular updates on your progress and notify you when a closing date has been confirmed.
  • Free loan amount calculator lets you see how much you can qualify for based on your home’s market value and other factors.
  • Option of adding other financial services, including a Discover credit card or a checking or savings account.

Rates and Terms

Discover’s APRs fall into the same range for all its products. Because home equity loans tend to carry higher rates than refinancing in the broader market, this means Discover’s rates are relatively good for home equity loans but not as good for refinancing. However, the exact rate offered to you is determined by your credit score–so with the right financial profile, you may find a good deal with Discover.

Contact Discover

Discover gets mixed reviews from customers. It has an A+ rating from the Better Business Bureau, but only a 3/10 rating based on customer feedback on Trustpilot. However, it should be noted that most customer complaints involve disputes about credit card charges and are not related in any way to its home equity loan and mortgage refinance offerings.

  • Phone: 855-361-3435 to get a no-obligation quote from a personal banker (weekdays 8am – midnight ET). The hearing impaired should call a separate number: 888-728-3157.
  • Online application: Corporate address: Discover Home Equity Loans , 1 Corporate Drive, Suite 360, Lake Zurich, IL, 60047-8945


A home equity loan or mortgage refinance should come with a competitive rate and be easy to apply for. Discover’s HEL and mortgage refinance program meets both these requirements, with a quick, streamlined application process helped along by a team of personal bankers. From a trusted credit card provider serving millions of customers, Discover’s home equity and refinance loans offers an attractive option to any homeowner looking to dig into their equity to borrow money.

By Nadav Shemer
Nadav Shemer specializes in business, tech, and energy, with a background in financial journalism, hi-tech and startups. Nadav writes for He enjoys writing about the latest innovations in financial services and products.
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