Third Federal Savings & Loan HELOC Review 2026
Last updated on August 25, 2026
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Our Take
4.5
HELOCs
NerdWallet rating
The Nerdy headline:
Third Federal Savings & Loan doesn’t charge closing costs on its HELOCs, and you won’t have to worry about any initial draw requirements. The lender also offers a rate-match program; if it can’t beat a rate from a competitor, you get $1,000. However, Third Federal’s HELOCs come with an annual fee of $275 and are available in only 28 states plus Washington, D.C.
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Third Federal Bank: NMLS#449401
National / regional
Regional
Min. credit score
680
Max LTV
80%
Loan types and products
N/A
Pros
- No closing costs or prepayment penalties.
- No initial draw requirements.
- Will match other lenders’ rates.
Cons
- $275 annual fee.
- Maximum combined loan-to-value (CLTV) ratio is only 80% (for lines up to $200,000).
- Doesn’t offer fixed-rate options.
Full Review
💲Third Federal Savings & Loan HELOC Rates
HELOC rates are determined by two things. The first is the prime rate, which is what banks pay to borrow from one another. The second part is a margin, which the lender calculates based on your financial qualifications (including your credit score, existing debts and income). The prime rate plus your margin equals your HELOC rate offer.
Current prime rate — last changed Dec. 2025 | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high | Projected median prime rate for 2026 |
|---|---|---|---|---|
6.75% | 6.75% | 6.75% | 7.5% | 6.8% |
Sample rates for each state where Third Federal does business are available online.
👍 Reasons to get a Third Federal Savings & Loan HELOC
Third Federal HELOCs don’t have any initial draw requirements, closing costs or prepayment penalties. Prospective borrowers can take advantage of Third Federal’s rate-match program, which promises to beat a competitor’s HELOC rate or pay you $1,000.
Third Federal excels in rate transparency, offering sample rates on its website for all states in which it offers HELOCs. And borrowers are given multiple options for customer support, including phone and online chat. You can also submit an online request for a loan officer to call you directly or visit one of Third Federal’s 36 branches located in Ohio and Florida.
» MORE: Best HELOC lenders
🤔 Reasons why Third Federal Savings & Loan’s HELOC gives us pause
Third Federal’s HELOCs are only available in 28 states and Washington, D.C., and they come with a hefty $275 annual fee. Its maximum accepted CLTV ratio is also only 80% for HELOCs with credit limits of $200,000 or less. Higher ratios might be accepted for larger credit line amounts in some cases. There are no fixed-rate options available, and these HELOCs can’t be used for second homes or investment properties.
📎 Ways to apply for a Third Federal Savings & Loan HELOC
How to Apply | Availability |
Online 🧑💻 | ✅ |
Over the phone 📞 | ✅ |
Mobile app 📶 | 🚫 |
In person 🏦 | ✅ |
You can contact Third Federal customer service via phone or online messaging. You can also visit a branch location or submit an online request to have a loan representative call you directly.
🛒 Alternatives to a Third Federal Savings & Loan HELOC
Wondering if another lender or product might be a better fit? It’s worth it to shop around to learn more about your options.
If you like not having any initial draw requirements, Fifth Third Bank also doesn’t require initial draws for its HELOCs.
If you like having several customer support options for help with your HELOC, Regions Bank provides similar accessibility.
Lastly, if you’re looking to qualify for a HELOC and have a higher CLTV ratio, PNC accepts ratios up to 89.9%, depending on your location.
A HELOC isn’t your only option
You can also explore products outside of HELOCs. Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Borrow from your home’s equity
Methodology
NerdWallet rates home equity line of credit lenders based on what matters most to borrowers: HELOC rates and fees, how much of a lender’s business is dedicated to home equity lines of credit, HELOC market share, product accessibility, borrowing flexibility and features, customer experience and rate transparency.
We review more than 40 lenders and score HELOC lenders using a weighted system that prioritizes affordability, flexibility and a smooth borrowing experience. Lenders earn higher scores for offering lower borrowing costs, higher combined loan-to-value (CLTV) limits, flexible draw and repayment terms, fixed-rate options, faster closing times and clear, accessible rate information, along with strong customer support throughout the process.
We use a mix of lender-provided information, publicly available data and our own analysis to evaluate each lender. Recent regulatory actions may affect a lender’s score.