There’s a new lender hanging out their shingle in the marketplace, Discover Mortgage Loans. Should you trust Discover Mortgage Rates for your next home loan and how do their purchase and refinance rates stack up against the best mortgage lenders like Amerisave? Here is my unbiased review of Discover Mortgage services, interest rates and fees to help you make an informed decision without walking away from cash on the table.
Discover Mortgage Rates
Does it pay to Discover when it comes to your home loan?
Discover recently entered the mortgage marketplace. How do they stack up to other lenders when it comes to mortgage rates and fees?
Discover Mortgage Profile
Discover Mortgage got into the game by purchasing Lending Tree. Their trademark “When Banks Compete, You Win” is a familiar selling proposition from TV and internet. Discover mortgages is currently offering purchase and refinance mortgage loans with fixed and adjustable interest rates and FHA home loans. For mortgage refinancing their loans are both rate and term refinancing as well as cash-out.
At the time of this review the Adjustable Rate Mortgage (ARM) options included 3/1, 5/1, and 7/1 ARMs, but no 10-year ARM. FHA home loans included a 15 and 30-year term length. Discover Mortgage seems to only offer conforming home loans at this time so if you’re in need of a Jumbo Mortgage you’ll need a different lender. They claim that their streamlined application process makes approval easier than with the top mortgage lenders online.
Discover Mortgage offers an on-time closing commitment, meaning if your mortgage isn’t funded on schedule you get a $1000 credit towards your closing costs. If you continue to refinance with Discover Mortgage you will earn their “Welcome Back” bonus of up to $2000 paid towards lender fees.
Discover Mortgage Contact Information
PO Box 30416
Salt Lake City, UT 84130
Discover Mortgage Rates Review
Most people focus solely on getting the lowest purchase and refinance rates, often at the expense of fees. How does Discover Mortgage stack up when compared to other lenders? I looked at the rates published on the website and they’re currently advertising a 30-year fixed rate mortgage for 3.75 percent.
The problem is when you check the fine print you have to pay 1.125 discount points AND qualify based on single family, owner-occupied with a loan-to-value of 70% or better and a credit score of 720 or better. Paying that amount at closing for discount points is simply ridiculous. Some of the most common mortgage mistakes are paying unnecessary discount points and overpaying the loan origination fee. Based on these requirements it seems that this lender is only interested in borrowers with above average financials.
The website gives an Annual Percentage Rate but does not disclose details about their loan origination fee. Paying one percent for loan origination is standard; however, many lenders charge more BUT you can find loan origination fees as low as a flat $700 by shopping local, community based credit unions.
Discover mortgage rates, like their credit card come with a slick package and celebrity voice overs; however, if you want the best deal for your next home loan you might want to give Discover mortgage rates a wide berth.
You can learn more about paying less for your next mortgage by checking out my free Underground Mortgage Videos.