Discover Home Loans Offering 5% Cash Back on Appraisal Deposits

Discover Home Loans, the mortgage loan division of Discover Financial, is offering a 5 percent cash back deal when you apply for a home loan. The 5 percent deal is on appraisal deposits for either a home purchase or mortgage refinance through Discover Home Loans. A home appraisal could cost anywhere between $200 and $500, depending on where in the United States you live.

The deal from Discover Home Loans is for Discover credit card holders who pay for an appraisal deposit with their credit card. The deal is going on from now until April 16, 2013. 5 percent cash back sounds enticing but you should also compare the mortgage rates and refinance rates Discover Home Loans offers with other rates available.

Discover Home Loans' advertised mortgage rates are competitive but there are other lenders quoting even lower rates. Naturally, the rates you are quoted will depend on the loan amount, the state the home is in and your credit score. Discover Home Loan is advertising current mortgage rates at 3.625 percent for 30 year conventional loans.

Other advertised rates from Discover include 15 year conventional mortgage rates at 2.875 percent. Discover is also advertising 10 year mortgage rates at 3.125 percent and 20 year rates at 3.625 percent, the same as 30 year rates. If you can afford to pay higher monthly payments for a loan less than 30 years, you should seek a shorter term loan.  The savings in mortgage interest payments are substantial.

In addition to offering 5 percent cash back on appraisals, Discover Home Loans is also offering a "Welcome Back" bonus for returning customers. "Welcome Back" customers get up to a $2,000 credit towards lender origination fees. Discover Home Loans  is rather new to the mortgage origination business, having only started offering mortgages in June 2012.

For more information and to get your own mortgage quotes from Discover Home Loans, go to the lender's website here: Discover Home Loans.