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Discover Home Equity Loans review

Unlocking cash from your home can be easy – how does Discover perform in helping you do that?

Our Verdict

Discover offers a debt consolidation service of up to $35,000 that is both easy to apply for and quick to come to a decision. What’s more, you can pay off your loan earlier with no additional penalties.

For

  • Fixed rate for the duration of your repayments
  • Lump sum payment
  • Potential tax deductions

Against

  • You will need a steady and reliable source of income
  • The amount you can borrow is limited by your house value
  • Outstanding mortgage can affect lending amount

Discover is a leading online bank and payment service in the US that helps people borrow smarter. They offer services that help consumers borrow more wisely, including home equity loans. 

The bank offers a full range of services including traditional banking services, as well as lending options. The goal is to bring banking into the 21st century and Discover offers a range of lending services that fall in line with that.

With an easy and understandable application process, Discover has put together a comprehensive guide that tells applicants exactly which documents they will need to provide, and when. 

The guide covers every step of the process from the initial call with a Discover banker, to each document that needs to be provided depending on your current sources of income, and any regular expenses including other loan and mortgage payments.

Features

  • A fixed rate loan that means your payments won’t change
  • Flexible terms, choose from 10, 12, 15, 20, or 30 years
  • No application fee
Discover specs

Information support: Online through their website Credit Resource Centre

Financial Education Center: Online through their website – eg Paydown planner, saving and loans calculator, college scholarships, personal loan resources

Support: Phone 24/7 inside and outside of the US, Live chat, social media

Interface: Computer, tablet, and mobile

The home equity loans Discover offers allow you to pay for life’s big expenses in one go by releasing a lump sum of money that is secured against your property. The loan is then paid off in fixed monthly amounts over a length of time that is agreed at the outset, making it easier for you to plan your long-term finances.

When you take out a home equity loan the money you have borrowed is given to you all at once, making it a good option if there are big expenses on the horizon.

One of the benefits of Discover’s home equity loan is the online calculator on the website. It allows you to get a clear understanding of how much you may be able to borrow, and what that would be to repay each month. Discover also offers clients a dedicated banker who takes care of their case which makes getting answers to questions easy.

Interface and usability

  • Account available online and via mobile
  • Receive a lump sum payment
  • Lower interest rate than other unsecured loan options

The application process is very easy and mainly completed online via an application form. What’s more, if you meet the necessary criteria this will automatically pre-qualify you for the loan. You will then have a call with an account manager and likely be asked to provide copies of additional documents.

These can all be uploaded online, or can be sent by fax or mail. You will have access to a loan account online to keep track of the application, and once it’s approved you can keep track of payments there too.

Your personal banker will be available on the phone if you have any questions while applying, and Discover can also be reached via live chat and social media.

Quality of product

  • Knows the market
  • Easy to use and manage
  • Free automatic payment program

Discover is a well-established financial service provider, working since the mid-1980s to help people fund life’s expenses through a range of borrowing solutions. The home equity loans are tailored to borrowers who have a big expense on the horizon and have assets against which a loan can be secured.

As a company they aim to help customers change the way they think about money by promoting sensible borrowing. They offer financial products that are tailored to individuals who have struggled to maintain a good credit score in the past, with the aim of helping them develop sound financial habits going forward.

Discover stands out against other financial service providers thanks to its personal approach to financial services. This translates into their home equity loan service, with the loan designed to take pressure off people when they are looking for a solution to fund a big payment without putting them under too great of a financial strain in the future. By offering fixed rates, Discover makes it easy to keep track of repayments.

Verdict

Discover is a financial services company that prides itself on personalized customer service, and this stands out in their home equity loan offerings. They have combined the convenience of an online application process with the service of a personal banker. 

This makes it easy to keep track of your application, and to get answers to any questions you may have that are completely tailored to your personal circumstances.

Their rates are fair and transparent too, meaning you pay no application fee, no origination fee, no home valuation fee, and there is no cash required at closing. Your monthly payment amounts will not change over the course of the loan’s term either.

Discover stands out against other financial service providers thanks to its personal approach to financial services. This translates into their home equity loan service, with the loan designed to take pressure off people when they are looking for a solution to fund a big payment without putting them under too great of a financial strain in the future. By offering fixed rates, Discover makes it easy to understand exactly what you’re signing up for.