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Home Equity Home Equity Loans

Discover Home Equity Loans Review

Discover Logo
on Discover’s website
Editorial Rating

Editorial Rating

What we like:

Flexible repayment terms

Fixed APR3.99%11.99%
Loan Amounts$35,000$200,000
Max LTV95%
Minimum Credit Score620
See how Discover stacks up against top home equity loan options

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 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


  • 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


  • 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 amount
  • The purpose of your loan
  • Your address
  • The type of home
  • Whether it is your primary residence
  • The estimated value of your home

The next part of the form asks for some personal information, such as:

  • Your name
  • Your mailing address, phone number, and e-mail
  • Your total income
  • Your marital status
  • Your citizenship status
  • Whether 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 rates
  • Loan minimum and maximum
  • Loan-to-value maximum
  • Repayment terms
  • Fees
  • Better Business Bureau Rating
  • Availability by state

If you want to learn more about our rating methodology, you can read about it on our methodology page.

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