Discover Review for 2024

Discover is best known for its line of credit cards, but it’s also a full-service bank and payment services company. And with its Discover Home Loans division, this company is worth a closer look for your mortgage needs.

Lending flexibility0.6
Ease of application5.0
Online experience4.3
Our Score
Discover Home Loans
Minimum down paymentNA
Minimum credit score620
Loan Products Offered

Conventional refinance loans
Home equity loans

Best Features

  • Easy online application process
  • No origination or appraisal fees
  • No cash due at closing


  • No purchase loans or HELOCs
  • Home equity loans start at $35,000, which might be too high for some borrowers
  • No branches for in-person interactions


The Mortgage Reports may be compensated by some of the mortgage lenders we review. However, this does not affect our review process or the ratings lenders receive. All reviews are created independently by our editorial team. We review products and services from partner lenders as well as lenders we do not work with.

Discover is a digital banking and payment services company with one of the most recognized brands in U.S. financial services.

If you are contemplating a mortgage refinance or exploring a home equity loan, Discover Home Loans division can provide a tailored solution to meet your needs.

Just be sure to check rates from a few different lenders, so you can be confident about getting the best deal on your mortgage.

Choosing the right mortgage lender can lay the foundation for your financial success. So naturally you want a company that can answer your questions and guide you through each step of the process. Whether you’re looking to lower your mortgage rate or borrow against your equity for a renovation project, read on for an in-depth Discover Home Loans review.

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What is Discover?

Discover is a financial institution that offers a range of products and services, including credit cards, personal and student loans, online banking, and home loans.

The company was established in 1985 as a subsidiary of Sears Roebuck and Co., and has since become an independent company.

While Discover is well-known for its credit cards, Discover Home Loans is one of its newer products. This mortgage option has become popular with homeowners interested in refinancing or borrowing against their home equity.

One attractive feature of Discover Home Loans is the ability to get financing with no origination fees, no appraisal fees, and no cash due at closing. Eliminating these fees can help borrowers save a significant amount of money.

Discover home loans review for 2024

Discover Home Loans is a mortgage lender that offers mortgage refinances and home equity loans. Unfortunately, they don’t currently offer purchase loans or home equity lines of credit (HELOC).

Using this lender to refinance your existing mortgage can help lower your monthly payment and reduce the loan term. You can also switch from an adjustable-rate to a fixed-rate mortgage. However, it’s important to note that Discover only offers conventional refinancing and doesn’t support government-backed loans such as FHA or VA loans. To qualify for refinancing you’ll need a minimum credit score of 620.

A key benefit of refinancing with Discover Home Loans is their no-closing cost option. This can potentially save you thousands of dollars in upfront fees. Instead, Discover covers closing costs associated with your refinance (appraisal fee, title insurance, and loan origination fees).

Discover allows borrowers to refinance up to 95% of their home’s value. However, you can only borrow between $35,000 and $300,000, and repayment terms range from 10 to 30 years.

If you don’t want to refinance, another option is applying for a Discover home equity loan. You can tap into your home’s equity to finance home improvement projects, consolidate debt, or cover other major expenses.

Home equity loans have fixed interest rates, so your monthly payment won’t change over the life of the loan. Similarly, you can choose a repayment term ranging from 10 to 30 years, and can borrow $35,000 to $300,000 in one lump sum.

With regard to credit score, Discover Home Loans generally requires a minimum credit score of 620 for refinances and home equity loans.

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Working with Discover

Our Discover Home Loans review revealed that securing a loan through Discover is a fairly straightforward process. The financial institution advertises its interest rates online, which allows you to compare their fees with those of other lenders.

Whether you’re looking to refinance your existing mortgage or apply for a home equity loan, you’ll need to provide supporting documentation such as pay stubs, bank statements, tax returns, etc.

Once you have your paperwork organized, submit an application to get pre-approved and upload your documentation. You can apply either online or over the phone.

This step provides an idea of your interest rate and how much you’re able to borrow. It can take several days (or longer) to get a pre-approval.

Once Discover pre-approves your loan application, you’ll likely need to complete additional steps to finalize the loan. This might include submitting additional documentation and scheduling a home appraisal.

Discover Home Loans reviews and ratings

Discover Home Loans doesn’t have a lot of online reviews. Among those available, some borrowers praised the lender for its uncomplicated loan process, fast application, and strong communication.

Additionally, the mortgage lender doesn’t appear to have ratings with the Better Business Bureau, Trustpilot, or Zillow. However, Bankrate gives the lender a rating of 4.1 out of 5 stars. This rating is based on factors like affordability, availability, and borrower experience.

Consumer Affairs, on the other hand, only gives the lender a rating of 1.1 out of 5 stars. This low rating was due to complaints of disorganization and slow response times.

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Should you work with Discover Home Loans?

Discover Home Loans only offers two types of loans—mortgage refinancing and home equity loans.

Refinancing makes sense if you’re looking to lower your monthly payment or change other terms of your loan. A home equity loan, on the other hand, might be better if you’re satisfied with your current terms. With this option, you can still access your equity to pay for home improvement projects, consolidate debt, or cover other expenses.

Discover might also appeal to borrowers who prefer a digital, streamlined application process, competitive interest rates, and no fees. With no application fees, no origination fees, and no cash due at closing, Discover is a cost-effective choice.

On the other hand, a Discover home loan isn’t the right choice if you’re looking for a wider selection of loan options like a jumbo loan or a government-backed loan. Currently, a conventional loan is the only option for refinancing, and the company doesn’t offer HELOCs. Keep in mind, too, that the company primarily operates online. So it’s not the right fit for borrowers who prefer an in-person lending experience.


The Mortgage Reports considers multiple factors when reviewing lenders. These factors include credit and down payment requirements, loan types offered, customer service indicators, and availability of online tools. We then use these factors to rank lenders in four categories:

  • Lending flexibility: Includes the number of loan types offered, special programs offered, minimum down payment requirements, and minimum credit score requirements
  • Customer service: Includes CFPB complaints per 1,000 loans and average rating from other top rating services
  • Ease of application: Includes the availability of an online pre-approval or pre-qualification process
  • Online experience: Includes the robustness of the lender’s online offerings, including online chat availability, phone number availability, and learning center/help center availability
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  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings