Discover Home Equity Loan Review 2024

Good for: Borrowers who want to minimize fees while maximizing the amount of equity they can access.
Taylor Getler
Last updated on March 4, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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Our Take


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Discover’s home equity loan stands out for having no fees or closing costs, as well as a high borrowing limit of 90% loan-to-value ratio with a max loan amount of $300,000. The lender also offers a wide range of repayment terms, as borrowers have their choice of 10-, 15-, 20- and 30-year terms. However, Discover home equity loans may take longer from application to loan funding than competitors.

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Discover Home Loans
Discover Home Loans: NMLS#684042

National / regional
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Loan types and products
Home Equity
at Discover Home Loans


  • Offers 10-, 15-, 20- and 30-year terms.
  • No annual fees or closing costs.
  • Website features customizable sample rates.


  • Minimum loan amount is $35,000.
  • Average time to close is 55 days, slower than some lenders.
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Full Review

Discover home equity loan rates and discounts

Most home equity loan interest rates are indexed to a base rate called the prime rate. Your offered rate will include a margin the lender has added to the prime rate. Offered margins depend largely on factors like your credit score, your existing debt, your income and the amount you wish to borrow. They will vary by lender.

Current prime rate

Prime rate last week

Prime rate in the past year — low

Prime rate in the past year — high





Discover lists a range of sample home equity loan APRs on its site, and prospective borrowers can also calculate a custom rate quote. On the day we checked, Discover’s advertised APR was between 6.49% and 10.56% for first liens (loans when you don’t have an existing mortgage) and 7.99% and 13.99% for second liens (loans when you already have a mortgage). According to the lender, the lowest APRs are reserved for homeowners borrowing at least $35,000 for first liens and $50,000 for second liens.

Applying for a Discover home equity loan

Borrowers can apply for a home equity loan with Discover Home Loans through the lender’s website or by phone. Phone support is available from 8 a.m. to 12 a.m. ET Monday through Friday and from 10 a.m. to 6 p.m. ET on Saturday and Sunday. There are separate phone lines for borrowers with existing accounts and those who are still in the process of applying. When we called the lender, we were immediately connected with a representative who was able to answer all of our questions. There is no live chat feature on the website.

After a borrower applies for a home equity loan, Discover will conduct an appraisal of the property. Unlike some other lenders, Discover doesn't require an appraisal fee.

Discover also has a mobile app, which has a rating of 4.9 stars in the App Store at the time of writing. The app includes a link to open a home equity loan, but this takes you to Discover’s website in an external browser; there doesn't appear to be a way to apply within the app.

What you should know about Discover home equity loans

Homeowners can borrow up to 90% of their equity (up to $300,000), which is more than many competitors. The minimum loan amount is $35,000. Borrowers have their choice of 10-, 15-, 20- or 30-year terms.

Discover home equity loans don’t require closing costs or annual fees, which is unusual among home equity lenders.

According to the lender, the typical time to close on a Discover home equity loan is 55 days. The lender estimates one to two weeks to complete the application process (which may be a bit faster for borrowers who have their documents gathered and ready to upload); four weeks for loan processing and underwriting; and one to two weeks for closing and funding. Among lenders that we surveyed, the average time to close ranged from five to 55 days, with several lenders closing in under 30 days.

Borrowers can get a home equity loan on a second home through Discover, but only if it’s a first or second lien. Third liens are ineligible, meaning that borrowers won’t be able to get a home equity loan if they still have mortgages on both properties.

Alternatives to a Discover home equity loan

Borrowers interested in accessing a lot of their equity may be interested in a home equity loan from Rocket Mortgage, while borrowers who don’t want to pay closing costs may consider U.S. Bank.

Home equity loans let homeowners access a lump sum by converting equity into debt. You’ll repay the loan at a fixed interest rate over an agreed time. Alternatives to a home equity loan include a home equity line of credit (HELOC) or a cash-out refinance. HELOCs offer greater flexibility to withdraw funds, up to the credit limit, as needed, but often have adjustable interest rates. A cash-out refinance replaces your existing mortgage with a larger loan. It will be most appealing if mortgage rates are lower than your current rate, and closing costs will apply.

Discover Home Loans offers cash-out refinances, but doesn't currently offer HELOCs.

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NerdWallet’s home equity loan star ratings are awarded by the editorial team based on the following evaluated factors: available terms, maximum combined loan-to-value ratio, closing costs and other fees, whether a prepayment penalty applies, ease of rate shopping and ease of application.

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