How does a home equity loan work?

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.

What is a fixed interest rate for home equity loans?

A fixed interest rate on your home equity loan means you will make stable and predictable interest payments towards your loan balance for the life of the loan.

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.

Borrow up to 90% CLTV

Lock in your rate with Discover on a home equity loan between $35,000 and $300,000 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
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 smooth process all the way through. No closing cost and competitive interest rate were the icing on the cake. Nice job!

Christopher B., TX, 3/5/2024

The process was overall very easy. The portal was super helpful to upload the documents and keep track of any new requests. The team was super communicative which was much appreciated!

Melissa W., MA, 3/12/2024

You did great walking me through the process and what documents were required. It was all virtual. Didn't require extensive appointments.

Stephanie H., FL, 3/19/2024

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

Easy smooth process all the way through. No closing cost and competitive interest rate were the icing on the cake. Nice job!

Christopher B., TX, 3/5/2024

The process was overall very easy. The portal was super helpful to upload the documents and keep track of any new requests. The team was super communicative which was much appreciated!

Melissa W., MA, 3/12/2024

You did great walking me through the process and what documents were required. It was all virtual. Didn't require extensive appointments.

Stephanie H., FL, 3/19/2024

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 other types of consumer loans.

Main

There are many differences between a home equity loan vs HELOC. For example, a home equity loan comes with fixed rates and a lump sum of cash while a HELOC comes with variable rates and a line of credit. Regardless of which you choose, 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: A fixed interest rate on your home equity loan means you will make stable and predictable interest payments towards your loan balance for the life of the loan.

Main

Mortgage providers will base the home equity loan options you receive on your available equity, income, debt, and credit history. Compare the loan amounts, rates, terms, and fees of these options to make an informed decision.

Discover Home Loans has resources and calculators to help you determine what works best for you.

You can calculate the amount of equity you have in your home and how much you can borrow using our loan amount calculator. Then try our monthly payment calculator to see what your monthly payment could be.

It’s also a good idea to use our debt consolidation calculator to see how much you could save each month by consolidating debts with your loan.

Main: With Discover, you will not have to pay any application fees, origination fees, or appraisal fees. Since a home equity loan is a secured debt that uses your home as collateral, the average interest rate is typically lower than what you'll pay on an average credit card or other form of unsecured debt.

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