Achieve vs. Third Federal Savings HELOC: what’s the difference?

If you're planning a renovation, consolidating high-interest debt, or funding another major expense, a home equity line of credit could put the equity in your home to work. A home equity line of credit (HELOC) is a revolving line of credit secured by your home, and both Achieve and Third Federal Savings offer one. The Third Federal Savings HELOC is a popular option worth comparing side by side with the Achieve HELOC before you apply.

One standout difference: Achieve Loans offers a fixed-rate HELOC with a 5-year draw period. Most HELOCs carry variable rates, which means the interest rate and your monthly payments could change over time. The sections below break down how these two lenders compare on the details that could affect your wallet.

Achieve Loans and Third Federal HELOCs at a glance

A fixed rate means your interest rate stays the same for the life of the line—no surprises if market rates rise. Most HELOCs from other lenders carry variable rates, so monthly payments on those lines could increase over time. 

The Achieve Loans HELOC has a fixed rate from day one. The Third Federal HELOC has a variable rate, with the option to lock in a fixed rate on all or part of your balance for $95. 

Achieve Loans and Third Federal structure the HELOC so your existing first mortgage stays untouched; you do not need to refinance to access your equity.

Achieve Loans requires a principal plus interest payment from day one. There is no option to pay interest-only during the draw period with either lender. 

Third Federal gives you the option to pay interest only for the first 10 years. On an interest-only HELOC, you could pay for years and still owe the same amount. Also, if you’ve been paying interest only, you’ll face a payment spike when the day comes that you have to make a regular principal plus interest payment. 

Third Federal's $1,000 Lowest Rate Guarantee: how it works 

Third Federal HELOC rates come with what the lender calls its Lowest Rate Guarantee. The program is straightforward: if you find a lower variable rate on a comparable HELOC from another properly licensed lender, Third Federal says it will beat that rate or pay you $1,000.

A few conditions shape how the guarantee applies. The program covers second-lien HELOCs only, not first-lien positions. (Second-lien HELOCs are the most common kind.) The competing rate must come from a variable-rate HELOC tied to the prime rate published in the Wall Street Journal. Introductory rates, temporary promotional rates, and fixed rates are all excluded from the comparison. The competing lender's HELOC also needs to match on property, term, loan amount, loan-to-value ratio, lien position, and prepayment policy, and the competing lender's fees must be equal to or lower than Third Federal's.

To exercise the guarantee, you submit documentation of the competing rate (an advertisement, rate sheet, email, or webpage) dated within three business days of your request. If Third Federal approves the rate adjustment, you have three business days to apply. One detail to note: a rate-match approval does not guarantee credit approval for the HELOC itself. The program terms are subject to change at any time without notice.

How the two HELOCs compare on rates

The most meaningful difference between these two HELOCs is rate structure. Achieve Loans offers a fixed-rate HELOC. Your interest rate is set when you close on your HELOC and stays the same for the life of the credit line, regardless of what happens in the broader market. Your payment during the draw period could change if your balance changes, but not because of a rate change.

Most HELOCs have variable rates, and Third Federal's HELOC is no exception. Third Federal's rate is tied to the prime rate, so payments could rise or fall as that benchmark changes. The lender's Lowest Rate Guarantee provides a layer of pricing assurance at the time you get your HELOC, though the guarantee itself compares variable rates only and does not lock in a rate for the long term.

A fixed rate removes a layer of uncertainty from your monthly budget. You know at closing exactly what the rate will be for the full draw and repayment period. If you'd like to find out what fixed rate you could qualify for, you can find out if you qualify through Achieve Loans to start the prequalification process. Prequalifying with Achieve Loans does not affect your credit score. 

Eligibility and where each HELOC is available

Achieve Loans and Third Federal weigh similar factors when reviewing a HELOC application: the equity in your home, your credit history, your income, and your combined loan-to-value ratio. Combined loan-to-value (CLTV) is the total of all loans secured by your property, including your first mortgage and the new HELOC, expressed as a percentage of your home's appraised value. A lower CLTV generally strengthens your application because it means more equity remains as a cushion.

Achieve Loans accepts applicants with a minimum credit score as low as 600. In most cases, a full in-person inspection of the home is not necessary; Achieve uses an automated valuation system to estimate the property's value, which could help speed up the process. Achieve's HELOC is not available in every state, so confirming your state's eligibility is a good first step.

Third Federal doesn’t disclose its minimum credit score. They also have state restrictions and may not be an option in your state.

Achieve Loans allows a CLTV up to 90% for qualifying applicants. Third Federal doesn’t publish a CLTV limit for its HELOC but it’s 80% for Third Federal’s home equity loan, so the HELOC borrowing limit might be similar. 

Fees and closing costs

Fees vary between the two lenders.

Achieve Loans has closing fees of $750 to $10,304, depending on the loan amount and where you live. Third Federal doesn’t charge closing fees, but they do charge a $275 annual fee. Over 30 years, that would be $8,250 in fees.

Neither lender charges a prepayment penalty, which means you could pay off your balance ahead of schedule without an extra fee. 

When a fixed-rate HELOC could be the better fit

A fixed-rate HELOC could be a smart option if predictable payments matter to you. Because the rate is set at closing, your interest rate stays consistent throughout the draw and repayment periods, even if market rates climb. That predictability might make budgeting easier, especially for a large project with a defined cost.

A variable-rate HELOC could be worth considering if you can get a very low rate and you expect to pay off the balance before rates go up. For example, Third Federal offers a 4.99% introductory APR for the first six months. After that, its lowest rate for the most well qualified borrowers is 7%, which is higher than Achieve Loans’ current low APR of 6.10%.

One additional note: interest paid on a HELOC may be tax-deductible when the funds are used to buy, build, or substantially improve the home that secures the loan. This deduction does not apply to funds used for other purposes, such as paying off credit cards. 

Consult a tax advisor regarding the deductibility of interest for your specific situation.