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Nerdy takeaways
- Capital One chose to wind down Discover’s home equity and refinance loan business in July 2025.
- As of Feb. 2, 2026, Discover stopped servicing any home loans. Existing borrowers should have received communication from the new servicer outlining any service changes.
- Discover has not announced a waitlist or plans to reopen applications for new home loan customers, and likely won’t.
Discover was once a major player in the home equity loans business, but you may have noticed these products are no longer available for new applicants. The lender also no longer accepts new applications for its refinance loans, meaning it’s completely out of the home lending business.
So what does this mean if you already have a Discover home equity loan — or a mortgage refinance — and what are your best options if you were hoping to apply for one?
What happened to Discover’s home equity loan business?
The driving force behind Discover’s about-face on home lending was Capital One’s acquisition of Discover in May 2025. In response to a rougher economy and changing consumer habits, Capital One chose to wind down Discover’s home equity loan and mortgage refinance offerings to focus on other areas of their business.
That said, if you have an existing home loan with Discover, you haven‘t been left in limbo — you can continue accessing your account and make payments as usual.
What this means for current and prospective home loan borrowers
Whether you already have a Discover home equity loan — or mortgage refinance — or were planning to apply for one, the details below explain what this change means for you and what actions you need to take, if any.
If you’re an existing Discover home equity loan borrower
If you have a home equity loan with Discover, you're now a Capital One customer rather than a Discover customer, meaning Capital One oversees and maintains your loan account.
Additionally, there are some important servicing-related changes that you should be aware of:
- Discover, as of Feb. 2, 2026, no longer services any home loans. Existing borrowers should have received communication from the new servicer outlining any service changes.
- The loan servicing portal has also changed; borrowers now manage accounts and mortgage payments through the updated website URL: yourmortgageonline.com. You’ll need to register with your 10-digit account number the first time you visit the site.
Aside from these shifts, existing Discover home loan customers shouldn’t see any changes to their loan terms, payments or Discover customer support channels. And if anything does change, Discover states it will notify customers by email or letter.
If you wanted to apply for a Discover home equity loan
Unfortunately, if you were all set to apply for a Discover home equity loan — you're out of luck. Discover is no longer accepting home loan applications from new customers.
Additionally, Discover has not announced a waitlist or plans to reopen applications for new home loan customers, and likely won’t, since Capital One exited the residential mortgage business in 2018.
Where should you go next?
Discover’s home equity loan received an overall five-star NerdWallet rating, so it’s understandable if the lender also topped your list. The good news: there are other lenders out there that offer the same or similar features and flexibility — and one just may turn out to be as strong a fit for your needs.
Best home equity loan lender alternatives
If you landed on this article because you were hoping to apply for a Discover home equity loan, your next step should be to explore our roundup of top-rated home equity loan lenders. There you’ll “discover” alternative lender options with similar home equity loan features to Discover home equity loans, such as high borrowing limits and a variety of term length options.
Best mortgage refinance lender alternatives
The same goes for those of you who were planning to apply for a Discover mortgage refinance loan. NerdWallet has curated the best mortgage refinance lenders and best cash-out refinance lenders — these are great places to start if you’re searching for a solid Discover alternative.
A HELOC could also be a good option
A home equity loan alternative that may fit your needs is a home equity line of credit (HELOC).
Unlike home equity loans, which provide you with a lump sum of cash, HELOCs let you withdraw funds as needed up to a specific limit, like a credit card. You can access the line of credit for a defined period — typically 10 years — before entering a repayment period of either 10 or 20 years.
HELOCs typically come with adjustable interest rates for at least some portion of the loan. If "adjustable rate” gives you pause, it’s possible — though less common — to get a fixed-rate HELOC. This option protects you from rate increases and provides predictable payments throughout the loan term. Just be prepared to pay a higher interest rate and know that you won’t be able to benefit if rates drop.
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