Discover: 2022 Home Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwood, IL. is located and offers various types of loans, as well as banking services and credit cards.

You can apply for personal loans, student loans, and home loans with Discover. The Illinois lender offers home equity loans and mortgage refinances, but does not currently offer home equity lines of credit or HELOCs.

Also Read :  GLOBAL MARKETS-World stocks slip, await CPI, U.S. midterms outcome

If you’re looking for a home equity loan, the website has easy-to-use calculators that can help you determine the loan amount and interest rate that best fits your personal financial situation. You can apply online or call the bank to apply for a home loan. Discover says it offers low, fixed APRs and extended payment terms of up to 30 years.

Also Read :  Our Favorite Gadgets for Plant Parents

Discover: At a glance

Types of home equity loans

Home equity loan

APR range

From 7.49% to 13.99%

Loan amounts

$35,000 to $300,000

Credit score requirements

At least 620

Terms of payment

Versions of 10, 15, 20 and 30 years

Average time for approval

Undisclosed

Homeowners with a credit score of 700 or higher get the best rates on a Discover home equity loan, although you can qualify with a score as low as 620. Although your credit score is the most important factor that lenders use to evaluate whether or not you will pay. To repay your loan, you must also have enough equity in your home (as a result of consistent mortgage payments over the years) to qualify.

According to Discover, the average customer can usually borrow up to 80% of their home’s total loan-to-value ratio, or CLTV ratio, but qualified borrowers can borrow up to 90% CLTV in some cases. Your CLTV is the ratio of your entire mortgage balance compared to the current appraised value of your property.

What we like

  • Free of charge: Discovery keeps the process simple by taking into account all additional fees such as setup fees, closing costs and home appraisals. This means that you don’t have to come up with any cash or add any additional costs to your loan during the loan application process. However, if you pay off your loan in full within 36 months, you will be required to reimburse Discover for up to $500 in closing costs.
  • Fixed interest rate: In today’s rising interest rate climate, a fixed interest rate is attractive because no matter what happens to the economy and financial markets, your rate won’t go up.
  • Flexible payment terms: Discover offers loan terms of up to 30 years, benefiting homeowners who need to stretch their financing over a longer period of time. You can pay off your home equity loan in terms of 10, 15, 20 and 30 years.

What we don’t like

  • Limited loan products: Discover only offers home equity loans and mortgage refinances. It does not offer HELOCs, which are variable rate products, or mortgage purchases.
  • Minimum loan amount: You must withdraw at least $35,000 with a Discover home equity loan, which may be high for some homeowners, such as those who only need a small project or a moderate amount of debt consolidation.
  • Minimum loan amount: You can only borrow a maximum amount of $300,000, which may be too small for homeowners who need to finance more expensive and long-term projects, especially compared to other lenders that offer home equity loan limits of up to $3 million. , is limited. .

Home Equity Loan Options

Discover currently offers home equity loans and mortgage refinancing, but it does not offer HELOCs or purchase mortgages. The lender also offers a number of other types of loans, such as personal loans and credit cards.

Payments

One of the advantages of a home equity loan is that it takes care of all the upfront payments that are usually associated with a home equity loan. Discover charges no application fee, and you will not be responsible for any down payment, title fee, recording fee, mortgage tax, or closing costs (unless you pay off your loan in full within 36 months, in which case you must pay up to $500 in closing costs compensate).

Plus, as a borrower, no fees mean you won’t find any money when you submit your application, saving you thousands of dollars right away.

How to qualify

You must have a credit score of at least 620 to qualify for a Discover home equity loan (although the lender prefers to see a score of 700 or higher). In addition to your credit score—which is typically the most important factor lenders consider when determining your interest rate—your rate also depends on several factors, such as your verifiable income, debt-to-income ratio, or DTI ratio. as well as how much equity you have built up in your home.

Getting Started

After you’ve spoken with a banker, the Discover website provides a detailed list of required documents to help you get started with your application. Be prepared to have the following documents, such as W-2 forms, bank statements, and other personal financial information. Once you’ve gathered all your documents, you can upload them using the Discover loan application portal, from which you can manage the rest of the loan process.

Discover says that if you upload your documents online (instead of sending them by mail or fax), it will speed up your processing time. According to Discover, you can expect to receive your funds within four days of closing your loan.

Customer service

To get a home equity loan, you can call a personal banker or submit your application online through the Discover website. Once you’ve set up your online account, you can access the Discover Loan Portal to track your application. Homeowners can contact customer support on weekdays from 8:00am to 12:00pm ET and on weekends from 10:00am to 6:00pm ET.

Live phone support:

  • New loan applications and loan inquiries currently in progress: 855-361-3435
  • Home Loans Financing: 855-295-2193
  • General Support: 855-361-3435

Source

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button