Ladies and gentlemen, Discover has entered the mortgage business. The financial services company is now offering variable- and fixed-rate conventional and FHA loans to both new homeowners and those looking to refinance.
A spokesman for the company says the “product is a key addition to Discover’s expansion as a direct bank.”
Discover added private student loans to its repertoire last year, after purchasing a large chunk of Citigroup’s existing portfolio. It also offers other traditional banking products, such as certificates of deposit, money market accounts, savings accounts and personal loans.
Checking accounts are currently in the pilot phase, which is expected to be expanded by the end of the year, the spokesman says.
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The new home loan product will conform to Freddie Mac and Fannie Mae standards for the secondary markets. Rates currently advertised on the website include 3.750% for a 30-year fixed rate mortgage and 3.000% for a 15-year fixed rate mortgage. (Remember, rates are contingent on creditworthiness.)
“Home loans are a product our customers have been asking for,” Carlos Minetti, president of consumer banking and operations for Discover, said in a press release.
Discover is also adding a few incentives to its mortgage program to make it more attractive, including a credit of up to $2,000 toward closing costs for existing customers who conduct future home-buying and refinancing business with the company. It will also issue a credit of up to a $1,000 toward closing costs if unable to close a loan as scheduled.
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Image: seier+seier, via Flickr
Jeanine Skowronski Personal finance reporter and credit expert, Jeanine's work has been featured by TheStreet, Newsweek, Business Insider, Yahoo Finance, MSN, Fox Business, Forbes, CNBC and various other online publications. She has previously served as the managing editor of a small personal finance blog for Xanga.com and an editorial assistant at Maxim Fashion magazine. @JeanineSko
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