Third Federal vs. PenFed Credit Union HELOC
Third Federal and PenFed Credit Union compared on rates, fees, borrowing limits and fixed-rate options, from each lender's published terms.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
Disclosure: Shawn Way is a loan officer at West Capital Lending, Inc., which competes with these lenders. HELOCHQ isn't paid by any lender for reviews, and every fact below comes from the lender's own published terms.
Third Federal prices below prime with no closing costs and a lowest-rate guarantee, but serves a limited set of states. PenFed lends nationally with a fixed-rate lock option but charges a $99 annual fee.
On this page
Side by side
| Third Federal | PenFed Credit Union | |
|---|---|---|
| Type | Savings and loan | Credit union |
| Rate | Variable, prime minus 0.51%; 6.490% shown for Franklin County, Ohio, as of October 22, 2026 | Variable, prime plus a margin; as low as 7.000% APR shown, with prime at 7.000% |
| Credit score | Not published by Third Federal as of October 23, 2026; ask the lender | Not published by PenFed Credit Union as of October 26, 2026; ask the lender |
| Max borrowing | Not published by Third Federal as of October 23, 2026; ask the lender | Up to 85% (80% in Texas and on condos) |
| Line size | Not published by Third Federal as of October 23, 2026; ask the lender | $25,000–$500,000 |
| Terms | Up to 10-year draw; 30-year total term | 10-year draw, 20-year repayment |
| Fees | No closing costs; no prepayment penalty | PenFed pays most closing costs; $99 annual fee; appraisal for lines over $400,000 (about $550–$850); some state taxes paid by the member |
| Fixed-rate option | Not published by Third Federal as of October 23, 2026; ask the lender | Lock up to three advances of $10,000 or more at a fixed rate for 240 months |
Sources: Third Federal (checked October 23, 2026) and PenFed Credit Union (checked October 26, 2026). Terms change; confirm with each lender.
Use a free calculator, or get your HELOC rate from Shawn.
The difference that matters
Both cover most or all closing costs. Ask Third Federal about any annual or early-closure fees, and PenFed about which costs you'd pay in your state.
Choose Third Federal if
- You're in a state Third Federal serves
- You want prime-minus pricing with no teaser rate
- You'd use its rate-match guarantee
Choose PenFed Credit Union if
- Third Federal doesn't lend in your state
- You want to lock part of the balance at a fixed rate
- You want an express closing
If neither fits
Different lenders draw the line in different places on credit score, loan-to-value, property type and state. A broker can price several lenders with one application. Get your HELOC rate, or if you already have an offer from either lender, see how it compares with HELOCs closed this year.
Full reviews
Shawn Way is a loan officer at West Capital Lending, Inc., which may compete with the lenders reviewed here and may also arrange loans through some of them as a mortgage broker. Facts come from each lender's own website on the date shown and can change; confirm current terms with the lender.
Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis, FRED
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau