Discover® home equity loans offer an attractive package with a lower-than-average minimum APR, ranging from 7.99% to 12.86% (as of July 2024), and no application, origination, or appraisal fees, which can save borrowers significantly on closing costs. This is particularly beneficial as closing costs can reach up to 6% of the total loan amount with other lenders. Discover also stands out by approving loans for borrowers with as little as 10% equity and providing services in nearly every state, excluding Iowa and Maryland. However, loan amounts are limited to between $35,000 and $300,000, which may not suit those seeking smaller or larger loans. The lender requires a minimum credit score of 680 and a combined loan-to-value ratio of up to 90%, higher than many competitors. Discover also boasts strong customer service ratings, including an A+ from the Better Business Bureau. While Discover lacks brick-and-mortar locations and only offers application options online or via phone, it compensates with no lender fees and rate locks at application. Compared to competitors like TD Bank and Rocket Mortgage, Discover offers competitive rates and broader availability, making it a solid choice for many homeowners.
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