Looking for Discover Bank
Mortgage Rates?
Discover Bank no longer offers home loans or home equity products — Capital One acquired Discover and shut down all home lending in 2025. Here are today's top-rated alternatives with rates near 3-year lows.*
#1 Pick — See Rates as of Feb 28, 2026
Unlock your home equity with the top-rated lender
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Have compared rates
7.11%*
Avg. HELOC rate
$0
To compare lenders
*Rates as of Feb 28, 2026. Sources: Bankrate national survey, Money.com. Rates vary by lender, credit score, and LTV. Your rate may differ.
Why Discover Bank Can't Help You Here
Discover Bank originally launched home equity loans in 2013, offering fixed-rate products with no origination fees, no appraisal fees, and no cash required at closing. However, after Capital One completed its $35.3 billion acquisition of Discover in May 2025, the combined company announced it would wind down all home equity and refinance operations in July 2025. As of February 2, 2026, Discover stopped servicing all remaining home loans entirely.
Note: "Discover Bank wholesale mortgage rates" never existed as a product — Discover was exclusively a direct-to-consumer lender, not a wholesale mortgage channel. If you've been searching for this term, you were likely looking for Discover's retail home equity rates, which are now discontinued.
The good news: several top-rated lenders still offer home equity loans and HELOCs with competitive rates, many with fully online applications and no credit score impact to check your rate.
The Real Cost of Not Using Your Equity
Illustrative example: what happens when you keep $50,000 in credit card debt instead of consolidating with a home equity product.
Credit Cards at 22% APR
$11,000
Interest paid per year on $50,000
HELOC at 7.11% APR
$3,555
Interest paid per year on $50,000
That's $7,445 more in your pocket — every year. Over 5 years, you'd save $37,225 in interest.
This is an illustrative example only. Credit card APR based on the Federal Reserve's Q4 2025 average (22.76%). HELOC rate based on Bankrate/Money.com national survey (Feb 2026). Actual rates vary by lender, credit score, and other factors.
The Fed held rates steady in January 2026 at 3.50%-3.75% after cutting 175 basis points since Sept 2024. FOMC minutes revealed officials are deeply split on next moves, but Goldman Sachs and Bank of America forecast rates reaching 3.00%-3.25% by year-end, which could push home equity rates lower. Sources: Federal Reserve, Bankrate, CNBC (Feb 2026).
Based on avg. home equity loan rate per Bankrate (Feb 2026). Actual payment depends on rate, term, and lender fees.
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Understanding Home Equity Products
Reviewed by a team of financial journalists with over 50 years of combined experience in mortgage and personal finance reporting.
Home Equity Loan (HEL)
- Fixed rate — predictable monthly payments
- Lump sum disbursement at closing
- Interest may be tax deductible if used for home improvements
- Avg. rate: 6.95% (Bankrate/Money.com, Feb 2026)
Best for: Debt consolidation, large renovations, one-time expenses
Home Equity Line of Credit (HELOC)
- Variable rate — drops automatically when Fed cuts
- Draw as needed during draw period (like a credit card)
- Interest may be tax deductible if used for home improvements
- Avg. rate: 7.11% (Bankrate/Money.com, Feb 2026)
Best for: Ongoing projects, flexible spending, riding rate cuts down
The Smart Strategy for 2026
What financial experts recommend for homeowners who need equity access now
Keep your low primary mortgage rate
If you locked in a rate below 5% during 2020-2021, a cash-out refinance would replace it at today's ~6% rates. A home equity product keeps your first mortgage untouched.
Open a HELOC now while rates trend lower
HELOC rates have dropped to 3-year lows, averaging 7.11% per Bankrate (Feb 2026). With a variable rate, you'll automatically benefit from any additional Fed rate cuts expected in 2026 — no refinancing needed, no closing costs.
Refinance everything later when rates drop further
Once mortgage rates reach 5% or lower, consolidate your first mortgage and HELOC into a single low-rate refinance. Both Goldman Sachs and Bank of America forecast the Fed rate reaching 3.00%-3.25% by the end of 2026, which would bring mortgage rates down further.
Why acting sooner may save you money
The Fed has cut rates 175 basis points since September 2024, and FOMC minutes from January 2026 show officials are deeply split on the path forward. While some favor further cuts, others are keeping hikes on the table due to inflation concerns. Fed Chair Powell's term expires May 2026, adding another layer of uncertainty. Locking in a HELOC now positions you to capture future rate drops automatically without waiting for clarity.
Sources: CNBC (Feb 18, 2026), Bankrate (Feb 2026), Federal Reserve FOMC Minutes
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Frequently Asked Questions
Questions homebuyers ask before comparing rates
01 Does Discover Bank still offer mortgage rates or home equity loans?
No. Capital One completed its $35.3 billion acquisition of Discover Financial Services in May 2025. After a strategic review, Capital One announced it would wind down Discover's entire home equity and refinance business in July 2025. As of February 2, 2026, Discover stopped servicing all remaining home loans. If you were a Discover home loan customer, your loan was transferred to yourmortgageonline.com for continued servicing.
02 Did Discover Bank ever offer wholesale mortgage rates?
No. Discover Bank was exclusively a direct-to-consumer (retail) lender for home equity products. They never operated a wholesale mortgage channel. The term "Discover Bank wholesale mortgage rates" likely stems from search query confusion. Discover's home equity loans were offered directly through discoverhomeloan.com with fixed rates, no origination fees, and no appraisal fees — but this program ended in 2025.
03 What are the best alternatives to Discover Bank for home equity?
Several top-rated lenders offer competitive home equity loans and HELOCs. The lenders listed above are among the highest-rated alternatives with online applications, competitive rates near 3-year lows, and many offer rate-check tools that don't impact your credit score. Compare rates from multiple lenders to find the best fit for your situation.
04 Is now a good time to get a home equity loan or HELOC?
Current rates are near 3-year lows, with the average HELOC at 7.11% and home equity loans at 6.95% as of February 2026. The Fed has cut rates by 175 basis points since September 2024, and analysts at Goldman Sachs and Bank of America expect rates to reach 3.00%-3.25% by year-end 2026. If you choose a HELOC, the variable rate will automatically decrease with future Fed cuts — no refinancing needed.
05 Should I get a HELOC or a home equity loan?
A HELOC offers more flexibility — you draw funds as needed and the variable rate drops automatically when the Fed cuts rates. A home equity loan gives you a lump sum at a fixed rate for predictable payments. In 2026's environment where rates may continue falling, many experts favor HELOCs because they capture rate decreases without refinancing costs.
06 How much equity do I need to qualify?
Most lenders require at least 15-20% equity in your home. For example, if your home is worth $400,000 and you owe $200,000, you have 50% equity ($200,000). Lenders typically allow you to borrow up to 80-85% of your home's value minus your remaining mortgage balance. A credit score of 620-680 is the typical minimum, though the best rates go to borrowers with 740+.
07 Is home equity loan interest tax deductible?
Yes, if you use the funds to buy, build, or substantially improve the home that secures the loan. Under current tax law, you can deduct interest on up to $750,000 of total mortgage debt (including your first mortgage and home equity loan combined). This is a significant advantage over personal loans and credit cards, where interest is not deductible. Consult a tax professional for your specific situation.
08 Why should I trust this comparison instead of going directly to a bank?
Our editorial team brings over 50 years of combined experience in financial journalism, with work featured in the Wall Street Journal, Forbes, NPR, and ABC News. We've helped over 10 million people compare financial products annually across 327 categories, reviewing more than 14,000 companies. Each lender rating involves 200+ hours of research from 100+ sources. Every lender listed has been independently evaluated for rates, fees, customer service, and overall value.