Most lenders charge fees, but some charge higher fees than others. No origination fee lenders often compensate by charging borrowers a higher interest rate, and Discover does just that. Here are the prices of Discover Home Loans.

Assembly costs

Discover does not charge fees for processing and underwriting mortgages. Although appraisals and other services from different providers generally increase your closing costs, as with any mortgage, Discover takes care of these costs for you.

With other lenders, you will assess the fees for your specific loan on your loan estimate before committing to borrow. There would also be certain mortgage services that you could purchase to seek lower fees, such as title insurance for example. You can skip these steps with Discover Home Loans, but remember that you are paying a higher rate.

Rate Lock Fee

Discover Home Loans will lock your mortgage rate for 25 days from the date of your application. You’ll get the best rate you qualify for that day, rather than waiting and watching for the perfect time to lock.

The company does not offer rate lock extensions or floating options. If you don’t complete your application within 25 days, Discover will close it. If you resume the process later, you will receive the best rate available at that time.

“Fortunately, our rates are not tied to a rate index like conventional lending rates, which can change several times a day. Our rates tend to stay more stable over time,” a company spokesperson said.

Prepayment penalties

Discover Home Loans charges prepayment penalties if you repay your loan within 36 months of closing. In this case, they are asking you to reimburse a portion of the closing costs, up to $500. Borrowers residing in Connecticut, Minnesota, North Carolina, New York, Oklahoma, or Texas are exempt from Discover prepayment penalties.

The company does not charge monthly payment fees to borrowers on its loans, unless one of your loan payments is late or there are not enough funds to cover your payment.