Home Equity Loan

Keep your existing mortgage
and tap into your home equity.

What is a home equity loan?

A home equity loan makes it possible for you to turn the equity in your home into cash in your pocket. This type of loan typically provides access to a lump sum of cash at a low, fixed rate. You pay it back over a set period of time with a fixed monthly payment.

How to qualify for a home equity loan?

To qualify for a Discover Home Equity Loan, here are few items we look for:

Credit Score of at least

680

History of responsible credit use

Verifiyable employment and income

Debt-to-Income Ratio (DTI) less than

43%

what is DTI?

Borrow up to 90% CLTV

Lock in your rate with Discover on a home equity loan between $35,000 and $300,000 (2nd Lien) up to 90% combined loan-to-value (CLTV).

Fixed Repayment Terms

Find the monthly payment amount that's right for your budget with fixed terms of 10, 15, 20, or 30 years.

Loan Payment Example

$0 Costs at Closing

Tap into your equity with $0 application fees, $0 appraisal fees, $0 origination fees, $0 processing fees, and $0 charges at closing.

Home Equity Loan: Rates, terms, and fees

Interest Rates	Fixed interest rates from x.xx% - xx.xx% APR View APR disclosure
Loan Amounts	$35,000-$300,000 (2nd Lien)
Payments	Fixed Monthly Payments
Terms	10, 15, 20 & 30 Years Loan Payment Example
Application Fees	$0
Origination Fees	$0
Appraisal Fees	$0
Costs Required at Closing	$0

Get Started

Find the Home Equity Loan options that work for you

Loan amount calculator

See how much you could borrow

Debt consolidation calculator

Pay off debt & check your savings

Rate & payment calculator

Check your fixed rate & payment

Cash out refinance calculator

Turn your home equity into cash

Home Equity Loan uses

Here’s what customers are saying about Discover Home Equity Loans

Easy process and very quick to get the loan completed. Everyone I spoke with was easy to work with as well.

Lisa J., IL, 12/18/2024

Each representative that assisted with my loan, regardless of how small or big the work was, was done with exceptional care, dedication and professionalism.

Eveth R., DE, 12/15/2024

Being able to do everything online was a big plus. Everything was very straightforward and easy.

Randall S., CA, 12/11/2024

Here’s what customers are saying about Discover Home Equity Loans

Easy process and very quick to get the loan completed. Everyone I spoke with was easy to work with as well.

Lisa J., IL, 12/18/2024

Each representative that assisted with my loan, regardless of how small or big the work was, was done with exceptional care, dedication and professionalism.

Eveth R., DE, 12/15/2024

Being able to do everything online was a big plus. Everything was very straightforward and easy.

Randall S., CA, 12/11/2024

Applying is simple from start to finish

Getting the Basics

Around 1-2 Weeks

Apply online or over the phone to review your loan options, then upload required documents. We’ll confirm your initial eligibility.

Processing Your Info

Around 4 Weeks

We’ll gather third-party information about your home and then send your complete application to underwriting for a final decision.

Closing Your Loan

Around 1-2 Weeks

We’ll contact you to schedule your closing and then arrange for your loan funds to be sent to your accounts.

Get Your Application Checklist

Home Equity Loan questions & answers

Main: A home equity loan is a second mortgage that lets you pull cash from your home equity. Unlike HELOCs, home equity loans come with low, fixed rates and provide a lump sum of cash instead of a variable line of credit.

Main

Please note: Discover Home Loans offers a home equity loan product, but does not offer HELOCs.

A home equity line of credit (HELOC) is a type of credit account that lets you borrow money against the value of your home. Because the money you borrow is a secured debt that uses your home as collateral, you can typically obtain a lower interest rate on a HELOC or other home equity loan than you could get for different types of consumer loans.

Main

There are many differences between a home equity loan vs HELOC. For example, a home equity loan typically comes with fixed rates and a lump sum of cash, while a HELOC typically comes with variable rates and a line of credit. Regardless of your choice, both a home equity loan and HELOC can help finance major projects like home renovations.

Discover offers home equity loan and mortgage refinance products but does not offer HELOCs.

Main

Several factors will affect your eligibility for a home equity loan, such as your income level, employment status, credit score, and history of making mortgage payments on time. Lenders may also consider your debt-to-income ratio (DTI)—the percentage of your monthly income that goes toward existing debts.

To qualify for a home equity loan from Discover, you'll need a credit score of at least 680, a history of responsible credit use, verifiable employment and income, and a DTI of 43% or less.

Main

When applying for a home equity loan, your lender may perform a hard credit inquiry to determine how much risk you pose as a borrower. This may have a small but negative effect on your credit score.

After closing, your loan will appear as a new account on your credit report. New credit may affect your credit score.

You can reduce any impact on your credit score by making timely monthly payments on your home equity loan.

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The amount of money you can get depends on the lender and your financial circumstances. However, most lenders will only let you borrow up to 80% of the equity in your home.

Depending on your situation, you can apply for a home equity loan between $35,000 and $300,000 (1st Lien) with Discover.

See More FAQs

Your Home Equity Loan Guide

Find more in-depth information about home equity loans, different home equity products, and market insights.

Mortgage Products

How to qualify for a home equity loan
Mortgage Products

HELOC vs. Home Equity Loan: Which is Right for You?

Explore More

Main: Start your home equity loan application online or give us a call.

Get Started

Main: 1-855-361-3435

Main: Weekdays 8am–Midnight ET

Weekends 10am–6pm ET

Discover Home Loans Restrictions and Details

We do not lend in IA or MD. You are not guaranteed approval. Once you apply and submit your credit and property information, we will confirm your eligibility. We don’t lend on cooperatives, condotels, investment properties, log homes, manufactured homes, mobile homes, or secondary homes. We will only originate one 1st lien mortgage per property per 12-month period. The maximum loan amount you qualify for will depend on additional factors, including type of loan, lien position, loan-to-value and your credit history. We may change rates, program terms, and conditions without notice. Discover Card accounts may not be paid off with this home loan. All loan programs are offered by Discover Bank, 2500 Lake Cook Road, Riverwoods, IL 60015. NMLS ID 684042.