topic Re: Discover Home Equity Loan in General Credit Topics

Discover Home Equity Loan

WyomingJonMadeIt — Fri, 15 Mar 2024 00:33:44 GMT

I wanted to share my situation for anyone who might be in the same situation.

I recently was approved for a discover home equity loan. I had been denied by us bank, penfed, rocket mortgage. A local credit union wanted to work with me but charge $4k in fees.

I have a 680 credit score. No negatives. Paid two cars off early. I have 2 mortgages. One is $250k. One is $10k. Both on same house. $35k in credit card debt. $11k left on a penfed unsecured loan I previously used to consolidate debt. Total monthly payments aside from mortgages, $1,600.

In 2020 I moved and bought a house. I went from making $120k a year to $75k a year. By 2021 I was making $35k a year.

2024 I am back on track. $6k+ a month income. Really high credit card payments. House is stable. No vehicle loans.

I applied for discover home equity loan february 28th at 7:30pm eastern. $55k loan. Will pay off all credit card debt, penfoad loan, and current second mortgage. I will have two monthly mortgage payments and no other debt. The loan was officially approved 10 am eastern on march 8. 3 day waiting period. Signed for loan. 3 day waiting period, loan will fund monday. I will be free of all non house debt by friday next week.

680 credit score

$55k loan

11% interest

No loan fees, no repayment fees

$1,600 month payments now= $500 month payment

In a year I will have a higher credit score and refinance this loan to a low rate.

I hope this is an inspiration to someone else in the same situation I was in a month ago.

Re: Discover Home Equity Loan

CorpCrMgr1 — Fri, 15 Mar 2024 02:06:34 GMT

Congratulations on your loan! Thank you for sharing your story!!

Re: Discover Home Equity Loan

gorgon — Fri, 15 Mar 2024 13:35:30 GMT

Thanks for sharing

Re: Discover Home Equity Loan

SouthJamaica — Fri, 15 Mar 2024 16:51:04 GMT

@WyomingJonMadeIt wrote:
I wanted to share my situation for anyone who might be in the same situation.

I recently was approved for a discover home equity loan. I had been denied by us bank, penfed, rocket mortgage. A local credit union wanted to work with me but charge $4k in fees.

I have a 680 credit score. No negatives. Paid two cars off early. I have 2 mortgages. One is $250k. One is $10k. Both on same house. $35k in credit card debt. $11k left on a penfed unsecured loan I previously used to consolidate debt. Total monthly payments aside from mortgages, $1,600.

In 2020 I moved and bought a house. I went from making $120k a year to $75k a year. By 2021 I was making $35k a year.

2024 I am back on track. $6k+ a month income. Really high credit card payments. House is stable. No vehicle loans.

I applied for discover home equity loan february 28th at 7:30pm eastern. $55k loan. Will pay off all credit card debt, penfoad loan, and current second mortgage. I will have two monthly mortgage payments and no other debt. The loan was officially approved 10 am eastern on march 8. 3 day waiting period. Signed for loan. 3 day waiting period, loan will fund monday. I will be free of all non house debt by friday next week.

680 credit score
$55k loan
11% interest
No loan fees, no repayment fees
$1,600 month payments now= $500 month payment

In a year I will have a higher credit score and refinance this loan to a low rate.
I hope this is an inspiration to someone else in the same situation I was in a month ago.

Congratulations on making this move to reorganize the debt into a less onerous proposition.

Re: Discover Home Equity Loan

Mountaingirl17 — Mon, 13 May 2024 22:50:59 GMT

@WyomingJonMadeIt can I ask what your DTI was? I'm worried mine will be too high even though I have great credit score and history and good equity in the home. Wish the process didn't take so long to find out if I will be approved. Thanks so much!

Re: Discover Home Equity Loan

RamblingDaveyAlex — Wed, 02 Apr 2025 02:27:41 GMT

My wife and I get solicitations from NFCU, PenFed, Discover, and lots of other banks for HELOC's and Home Equity loans and I have to say the reason we decided earlier today to apply through Discover (160K pre approval) was because of this and one other post we saw about the ease of use with them, and our own situation was excellent. She's self-employed, I get base + commish, so it's a bit non-traditiona,l but they were awesome to work with and we're hoping the final stages go well, but so far it's been fantastic!

Re: Discover Home Equity Loan

WyomingJonMadeIt — Wed, 12 Nov 2025 19:53:33 GMT

I hope it went well for you. In may of 2025 discover was penalized by the federal bank regulators for home lending practices. As of may 2025 discover has merged with capital one and no longer offers home loans.

Re: Discover Home Equity Loan

WyomingJonMadeIt — Wed, 12 Nov 2025 19:54:58 GMT

Debt to income was about 20%. I have yet to see any loan regulator take higher than 40% monthly payments compared to GROSS income. discover stopped offering home loans in may of 2025.

Re: Discover Home Equity Loan

WyomingJonMadeIt — Wed, 12 Nov 2025 20:05:46 GMT

I just refinanced this loan. I applied late october 2025 to US Bank.

I refinanced for $55k at 8% interest on a 20 Year Loan. This dropped my payment from $538 to $463 a month, for 10 year less term. My first payment will be $90 toward principle. By the end of my first year i will be over $100 a month towards principle. My discover loan at a few months past a year, is only $23 per month to principle. I added an extra $11 each month, in this time I only payed $560 off of the loan.

Now that the discover loan is gone, and im moving forward with the 8% US Bank loan, i wanted to provide an update so that others can see how this situation improved.

My credit score has been in the 760+ range since consilidating to the discover loan.

My house appraisal on this loan put me a few percent under the 80% loan to value ratio most lenders want to see. It was a very brief drive by that skewed low on the house value, and valued about 40k lower than comparable houses are selling for. it is worth noting I have paid about $10k in principle off of my primary home loan since acquiring the discover loan.

Income was no issue.

Now the plan is to wait for interest rates to drop, and combine both loans into a 15 or 20 year loan with no Private Mortgage Insurance once rates for those loans are under 4%.

Re: Discover Home Equity Loan

Realist — Thu, 13 Nov 2025 10:36:15 GMT

I want to say congratulations on your progress. You earned it.

I refer to this as shuffling papers. It's combining basically trash debt, into a more efficient piles (new debt) that save money. Two or three inefficient loans, rolled into one better one, improves on the overall situation. Do this to other debts, and it builds more efficient piles. Do this enough, and you can combine the efficient piles into very efficient piles, piles that you can eventually eliminate within a reasonable timeframe.