Discover Home Loan Review
Discover Bank is probably best known for its line of credit cards that have been around in some shape or fashion since 1985, becoming its own independent entity in 2007. Over the past few years, it has been gradually expanding the scope of its products and services.
As well as offering credit cards and checking accounts, Discover Bank is also known for its low-cost online banking and provision of student, personal, and home loans. This includes mortgage refinancing, which will be the basis for this particular review.
It has built up a reputation for providing refinancing options at fair fixed rates, which allows the borrower to budget into the future in a dependable manner. It also offers a low-cost structure for refinancing, which means that you do not have to pay a ton of extra fees.
| Mortgage types | Home Equity Loans, Mortgage Refinance (cash out & no cash out) |
| Mortgage amount | $35,000 – $300,000 |
| Repayment terms | 10, 15, 20, or 30 years |
| APR | 3.99%-11.99% |
| Minimum credit score | 620 |
| Lender type | Direct Lender |
Discover Mortgage Loans: Pros
- A good starting APR.
- Low-cost refinancing option.
- Large loan-to-value limit.
- Looks after its customer base
Discover Mortgage Loans: Cons
- Not available in all states.
- Only fixed-rate options.
- No physical service.
Application Process
The process of seeing what mortgage refinancing options are available to you through Discover Bank is very quick and easy. You are able to apply for a quote either over the phone or online. This entails you entering all of the standard types of information, such as the size of the loan you are seeking, its purpose, and details about the property. You also need to provide some personal info in order for Discover Bank to assess your needs in the most accurate fashion possible.
A dedicated loan team and personal banker will be looking after the processing of your application, so you know that you will be in good hands. You will be able to keep track of the status of your loan, as well as easily upload any relevant documents through the website. In all, the closing process will take you approximately 30 minutes and approval for your application can take a week or two. A notary will normally meet you somewhere in order to officially sign the relevant loan documents.
Taking a Home Equity Loan With Discover
If you are looking for a home equity loan, Discover has you covered. You are able to apply over the phone or online in a quick and easy process. Loans will begin at $35,000 and go up to $300,000. The fixed rates will begin at 3.99% APR. You are able to submit all relevant documents online and sign all relevant paperwork electronically.
There is help available every day of the week if you need to talk with the loan team or a personal banker. The term lengths for a home equity loan with Discover range between 10 and 30 years and there are no origination fees.
Terms & Requirements
Discover Bank promises to offer people who are looking to refinance their mortgage great customer service, no origination fees, and low fixed rates. It aims to have a quick and easy application process and around-the-clock support to help answer any questions that you might have. Here are a few key terms and requirements you need to be aware of when considering refinancing your mortgage through Discover Bank:
Mortgage Requirements
In order to refinance your mortgage with Discover Bank, there are a few requirements that you will need to meet. Among these necessities include having a credit score that is at least 620, having a good track record of responsible credit use, income and employment that is verifiable, and a debt-to-income ratio that is lower than 43%.
As a rough guideline, Discover often lends between 70% and 95% of the value of the home, depending on the state and the circumstances of the borrower. Finally, you can refinance your mortgage through Discover Bank if the property on the list of 48 states. Only Maryland and Iowa are not part of this list.
Mortgage Terms
Discover Bank does not charge any origination fees, application fees, or appraisal fees, which is not always the case with mortgage refinancing companies. There is no requirement to have cash at closing as Discover Bank covers all of these associated costs. It also aims to offer low fixed rates to its customers, beginning at 3.99% APR and going up to 11.99% APR.
For these types of loans, Discover Bank usually offers between $35,000 and $300,000. According to the website, Discover Bank states that its debt consolidation clients save $670 on average each month by refinancing. Some of the other types of loans it offers include student loans and personal loans.
Repayment Terms
For the most part, Discover Bank wants monthly fixed payments on its loans, with the term lengths generally being 10, 15, 20, or 30 years. If you are looking to completely pay off the loan early, within 36 months of closing, then you have to reimburse the closing costs to Discover Bank, which will not be greater than $50,000.
These costs include title fees, mortgage taxes, and recording fees. However, for those people in Texas, Oklahoma, North Carolina, New York, Minnesota, and Connecticut, you will not have to reimburse these costs.
Privacy & Security
Discover Bank has built up a good reputation over the years for being a respected member of the banking space. It is a member of the FDIC, has an A+ rating with the Better Business Bureau, and is also an equal housing lender. These are all good signs that you are dealing with a legit company.
Discover Bank takes the security and privacy of all its customers very seriously. All communication and transactions are properly encrypted, and people can put in place enhanced security protocols on their accounts. This helps prevent nefarious individuals from being able to access your sensitive information.
Customer Support
One of the big aims of Discover Bank is to make sure that its clients or potential clients are always kept happy. This means ensuring that help and support are going to be available seven days a week.
You will be able to get a personal banker and loan team that is dedicated to your specific application when starting out. The support team will work between 8am and midnight ET on weekdays, with the hours being 10am to 6pm ET over the weekends.
Final Thoughts
Discover Bank seems to tick all of the boxes when it comes to its mortgage refinancing offering. It has a low-cost model with competitive APR rates. The fixed-rate model also allows borrowers to plan well in advance when it comes to making repayments. With acceptable eligibility requirements, Discover Bank could be a good option for a wide range of people who are looking at refinancing their mortgages. Discover has you covered if you are looking to get a home equity loan. You have the ability to easily apply online and you have access to decent loan amounts, APR rates, and term lengths. With a good reputation in the space, Discover is a solid option for people who are searching for the best home equity loan lender.
Address
Discover Bank
502 E. Market Street
Greenwood, Delaware 19950
Discover Home Loans pays all closing costs incurred during the loan process, so that you don’t have to bring any cash to your loan closing. In the event that you decide to pay off your loan balance in full within 36 months after your loan closes, you will be required to reimburse Discover for some of the closing costs that we are paying on your behalf, not to exceed $500.00. Reimbursable closing costs will include all title fees, recording fees, and mortgage/transfer taxes. If you reside in Connecticut, Minnesota, New York, North Carolina, Oklahoma, or Texas you are not required to reimburse the closing costs.
