Achieve Loans vs. Navy Federal home equity loans compared

Homeowners who have built up equity have real choices. A Navy Federal home equity loan could be one of them. An Achieve Loans home equity line of credit (HELOC) is another. 

Navy Federal is a credit union. Only members are eligible to apply for loans. Achieve Loans has no membership requirement, so it could be an option for many more borrowers.

Compare your home equity options based on eligibility, rate structure (fixed or variable), draw period, and loan term. Closing costs and other fees are also big factors in choosing a lender. 

Let's explore these two.

Membership: the first eligibility gate

Before you can apply at NFCU, you have to be a member. The credit union's field of membership covers all branches of the armed forces, veterans, Department of Defense civilian employees and retirees, and family members of eligible members. 

Homeowners outside these categories aren't eligible to apply for a Navy Federal home equity loan or HELOC.

Achieve Loans doesn't have any membership hurdle to jump. You don't need to hold a specific job or be a member of a specific organization to apply for a HELOC through Achieve Loans.

Achieve Loans HELOC at a glance 

Achieve Loans offers a fixed-rate HELOC. The way a home equity line of credit works is that you get access to a reusable credit line. You can borrow, repay, and borrow again up to your limit over and over during the draw period.

With an Achieve Loans HELOC, you get a five-year draw period, and you can choose from repayment terms of 10, 15, 20, or 30 years. Credit lines are available up to $700,000, or as much as 90% of your home's value, depending on your qualifications.

Achieve Loans HELOCs are fully amortized, meaning you make full principal-plus-interest payments from the start. This means you make progress on your principal with each payment. We don't charge a prepayment penalty, so paying ahead costs you nothing extra.

Navy Federal home equity loan and HELOC at a glance

Navy Federal offers eligible members two ways to borrow against home equity. Their home equity loan is a one-time loan with a fixed interest rate. Repayment terms run five, 10, 15 or 20 years. 

Navy Federal home equity rates on the HELOC work differently. That APR is variable, tied to the U.S. prime rate, and it could change monthly. The HELOC pairs a 20-year draw period with a 20-year repayment period, and an interest-only payment option is available during the draw period. 

With an interest-only HELOC, if you only pay the interest, the balance you owe doesn’t go down. Also, once you’re required to start making principal plus interest payments, your monthly payment amount is likely to spike sharply. Interest-only payments seem convenient and affordable but could lead to financial strain.

Navy Federal states that there are no closing costs on HELOC applications, with no application, origination, annual, or inactivity fee. 

Processing takes roughly 30 to 40 calendar days to close once Navy Federal receives a completed application. NFCU offers HELOCs up to $500,000.

Rates, draw period, and closing costs 

Which lender is right for you? 

If you qualify for Navy Federal membership, the credit union's covered closing costs and 20-year draw period could make it worth a full quote. Ask what the monthly payment becomes at the maximum APR in its HELOC disclosure rather than the advertised starting rate. Texas homeowners are the exception, because Navy Federal doesn't offer HELOCs there.

If membership is off the table, or you'd rather have a predictable interest rate and monthly payment amount for the life of the loan, our home equity loan fits: a fixed rate, no membership, and an application you complete online. 

Prequalify with Achieve Loans 

Prequalification with Achieve Loans takes a soft credit check, so finding out what you could borrow leaves your credit score intact. No membership, no refinance of your current mortgage, and no affiliation required. 

Find out if you qualify and get a clear picture of your options.