Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Equity Loans Discover Home Equity Loans Review Updated Aug 22, 2023 5-min read Reviewed by TJ Porter Reviewed by TJ Porter Expertise: Credit, credit cards, investments TJ Porter is a Boston-based freelance writer specializing in credit, credit cards, and bank accounts. He graduated with a degree in business from Northeastern University. Learn more about TJ Porter Learn Moreon Discover’s websiteEditorial RatingEditorial RatingWhat we like:Flexible repayment termsFixed APR3.99% – 11.99%Loan Amounts$35,000 – $200,000Max LTV95%Minimum Credit Score620See how Discover stacks up against top home equity loan optionsCompare Home Equity Loan Rates For most Americans, the most expensive thing they own is their house. These days, even small homes can cost hundreds of thousands of dollars, so it’s easy to wind up with a significant portion of your net worth tied up in your home. If you need cash for something, like a home improvement or debt consolidation, a home equity loan can help you turn some of your home’s value into cash. Typically, home equity loans have low interest rates because your home equity acts as collateral. And if you have a lot of equity, you can potentially borrow a large amount. One popular lender that offers these loans is Discover. This review will cover Discover’s home equity loans, whether they’re a good loan option for you, and if any alternatives might be better. In this review: Discover Home Equity Loans: At a glancePros & cons of Discover Home Equity LoansEligibility requirements & application processHow to find Discover home equity loan alternatives Discover Home Equity Loans: At a glance Discover Home Equity Loans Loan amounts $35,000 – $200,000 APRs 3.99% – 11.99% Term lengths 10, 15, 20, or 30 years Origination fee $0 Application fee $0 Minimum credit score 620 Max loan-to-value ratio 95% LendEDU rating 4.66 / 5.00 Discover is pretty flexible when it comes to its home equity loan offerings. It lets you borrow as much as 95% of your equity or $200,000, whichever is less. This high borrowing limit, combined with long repayment plans, means you should be able to finance most projects or major expenses. If you only need to borrow a little, or if you don’t have as much equity built up in your home yet, you can choose one of the bank’s shorter payment plans. The lack of fees is another major perk of Discover’s loans. There are no application or origination fees, and no cash payment required at closing. Real estate transactions and loans tend to come with high closing costs, so being able to open a loan for free is a good deal. Pros & cons of Discover Home Equity Loans Pros No fees Discover is known for having strong, U.S.-based customer service Low interest rates Fixed-rate loans for predictable payments Flexible repayment terms Cons Only those with excellent credit will get the lowest rates shown above Your home serves as collateral, putting it at risk if you can’t repay the loan balance More paperwork requirements than a personal loan Eligibility requirements & application process Another perk of borrowing from Discover is that the company’s loan eligibility requirements are relatively easy to meet. To qualify, you must have a credit score of at least 620, verifiable employment and income, and a sufficient level of equity in your home. Discover offers loans in every state and to citizens and permanent residents. Of course, to get a home equity loan, you need to own a home that you can use as collateral for the loan. You also need to have sufficient equity to meet Discover’s minimum loan of $35,000 and maximum loan-to-value (LTV) ratio of 95%. Our home equity loan calculator can help you run the numbers to make sure you’ll qualify. How to apply You can apply for a Discover home equity loan directly through Discover’s website. When you click the Apply Now button it will take you to a form asking you to provide some basic information, including: Your desired loan amountThe purpose of your loanYour addressThe type of homeWhether it is your primary residenceThe estimated value of your home The next part of the form asks for some personal information, such as: Your nameYour mailing address, phone number, and e-mailYour total incomeYour marital statusYour citizenship statusWhether you are applying for a loan on your own or with a co-borrower Once you provide all of this information, Discover considers your application. You can receive pre-qualified offers within just a few minutes. If you see an offer that you like, you can select it and begin the final approval process. This involves uploading documents to prove your employment and income and working with a loan specialist over the phone. While the length of the process varies for each borrower, you can get approved for a loan and have money in your checking account within a couple of weeks. How to find Discover home equity loan alternatives Discover is one of the best home equity lenders available—if you meet its credit requirements. Still, whenever you’re borrowing money, especially when your home equity is on the line, shopping around is always a good idea. Reducing your interest rate by as little as a quarter of a percent can save you thousands of dollars on a large, long-term loan. If you want to find more lenders, so you can compare prequalified quotes, check out our list of the best home equity loan providers. How we rated the Discover Home Equity Loan Discover earned a score of 4.66 out of 5.00. We rate home equity loans based on the following metrics: Interest ratesLoan minimum and maximumLoan-to-value maximumRepayment termsFeesBetter Business Bureau RatingAvailability by state If you want to learn more about our rating methodology, you can read about it on our methodology page. Recommended for youBest Home Equity Loans Home Equity Loan Calculator What is Home Equity?