Third Federal Savings mortgage review: rates, costs & calculator
A member-owned thrift known for low fees, a low-cost refinance program and competitive home-equity lending.
Third Federal Savings mortgage rates: what borrowers actually paid
Third Federal Savings prices each borrower individually, but federal loan-level records show what its borrowers actually got. On 1,085 conventional 30-year fixed purchase loans with at least 20% down closed in 2025, the median rate was 6.30% and the median APR was 0.28 percentage points below the typical lender's, with $3,525 in loan costs.
| 2025 home purchases | Loans | Median rate | APR vs benchmark | Loan costs | With points |
|---|---|---|---|---|---|
| Conventional · Third Federal Savings | 1,085 | 6.30% | −0.27 | $3,525 | 0% |
| Conventional · all lenders | 700,082 | 6.50% | +0.02 | $5,476 | 53% |
What the numbers say
- On conventional loans, Third Federal Savings's median APR ran 0.28 percentage points below the typical lender's (−0.27 vs +0.02 percentage points against the benchmark) — roughly $62 a month on a $325,000 loan at today's 7.18% average rate.
- Borrowers paid a median $3,525 in loan costs — $1,951 less than the $5,476 typical across all lenders.
- Only 0% of its loans carried discount points (53% overall), so its rates were mostly not bought down upfront.
- Lender credits were uncommon: 1% of its loans, versus 33% overall.
- Its borrowers took smaller loans (median $225,000 vs $325,000), which moves dollar costs and can move rates too.
How Third Federal Savings compares on conventional loans
| Lender | Loans | Median rate | APR vs benchmark | Loan costs | Lender credits |
|---|---|---|---|---|---|
| Third Federal Savings | 1,085 | 6.30% | −0.27 | $3,525 | 1% |
| Chase | 20,595 | 6.49% | −0.13 | $4,695 | 28% |
| U.S. Bank | 8,383 | 6.49% | −0.09 | $4,634 | 88% |
| Wells Fargo | 8,331 | 6.375% | −0.18 | $5,267 | 80% |
| Bank of America | 6,488 | 6.25% | −0.28 | $4,758 | 40% |
| All lenders | 700,082 | 6.50% | +0.02 | $5,476 | 33% |
Source: 2025 HMDA loan-level records (FFIEC/CFPB), 30-year fixed home purchases compared like for like. APR vs benchmark = median APR minus the average prime offer rate the week the rate was set; loan costs are borrower-paid. How we measured this.
Third Federal Savings mortgage calculator
Estimate a Third Federal Savings payment: enter the rate from your Loan Estimate, or start from today's 7.18% average 30-year fixed rate. For reference, Third Federal Savings's 2025 conventional purchase loans closed at a median 6.30%.
Prefer a full-page version? Open the mortgage calculator.
Third Federal Savings by the numbers
| Home loans originated (2025) | 21,298 |
|---|---|
| Total lending (2025) | $3.4B |
| Average loan size | $160,091 |
| Approval rate* | 63.4% |
| Volume rank (our roster) | #34 of 60 |
| Largest market | Ohio |
Source: federal HMDA data (2025), FFIEC/CFPB. *Approval rate = loans originated ÷ (originated + denied). It reflects a lender's channel and borrower mix — wholesale, online and refi-heavy lenders run lower because many applications are rate shops that never close — not how hard it is to work with. See our lender-approval analysis.
What Third Federal Savings actually lends
33.4% of Third Federal Savings's 2025 loans were rate-and-term refinance loans, versus 15.3% nationally.
| Share of 2025 loans | Third Federal Savings | U.S. |
|---|---|---|
| Conventional | 100% | 78% |
| FHA | 0% | 13.2% |
| VA | 0% | 8.2% |
| USDA | 0% | 0.6% |
| Home purchase | 14.5% | 52.5% |
| Rate-and-term refinance | 33.4% | 15.3% |
| Cash-out refinance | 1.3% | 14% |
Shares of originated loans by loan type and purpose, federal HMDA data (2025). They describe the lender's business mix, not the terms you would be offered.
Third Federal Savings at a glance
Third Federal Savings & Loan is a member-owned thrift founded in Cleveland in 1938 by Ben and Gerome Stefanski, and it still runs the way old savings-and-loans were meant to: it takes deposits and lends them back out as mortgages and home-equity credit, keeping much of what it originates on its own books.
Ben's son, Marc Stefanski, has led the company since 1988. As a mutual association rather than a shareholder-owned bank, it answers to depositors instead of Wall Street, and it leans on that structure to justify a low-fee, low-rate pitch.
The lender's calling cards are its refinance and adjustable-rate offerings. Its Smart Rate ARM carries an opening rate typically well below a comparable fixed loan, and after the initial fixed period it adjusts to the Prime Rate with no added margin or markup, which is unusual.
Both fixed and Smart Rate loans include a Rate Relock feature that lets borrowers lock in a lower rate later in the loan's life without a new application or appraisal.
Where Third Federal Savings's approval rate sits
Third Federal Savings's 2025 approval rate of 63.4% sits against the 76.6% national average. Read it as a signal of channel, not strictness — wholesale, online and refinance-heavy lenders run lower because so many applications are rate shops that never close.
Alongside first mortgages, Third Federal is known for competitively priced HELOCs and home-equity loans with no application or origination fees.
In 2025 Third Federal originated 21,298 loans worth about $3.41 billion, with an average loan size near $160,000 and an approval rate of 63.4%. Its footprint is concentrated at home in Ohio (13,197 records), followed by Florida, California, North Carolina and Georgia.
Notably, the bank lends in only a limited set of states, and in some of them it offers refinances but not purchase loans.
Who Third Federal Savings is best for
Third Federal suits homeowners in its service area who want to refinance or tap equity cheaply and are comfortable with a bank that keeps its product menu narrow.
Rate-sensitive borrowers drawn to the Smart Rate ARM's below-market opening rate and the Rate Relock option, or those wanting a no-origination-fee HELOC, are the natural fit. First confirm the bank actually lends for your purpose in your state.
Loan programs at Third Federal Savings
Its most notable programs and specialties:
- Fixed-rate mortgages in terms from roughly 5 to 30 years
- Smart Rate adjustable-rate mortgage that adjusts to the Prime Rate with no margin added
- Rate Relock feature to lock a lower rate later without a new application or appraisal
- HELOCs and home-equity loans with no application or origination fees
- HomeReady low-down-payment purchase mortgage (as little as 3% down)
- Home-At-Last and Forgivable down-payment-assistance grants plus the HomeToday education program (select states)
Typical industry minimum down payment by core loan type — Third Federal Savings's own minimums or credit overlays may run higher:
| Loan program | Typical min. down |
|---|---|
| Conventional | 3% |
| Jumbo | 10–20% |
| HELOC | n/a |
| Refi | n/a |
Strengths
- Member-owned thrift with a long-standing low-fee, low-cost reputation
- Smart Rate ARM adjusts to Prime with no lender margin or markup
- Rate Relock lets existing borrowers capture lower rates without refinancing
- No application or origination fees on home-equity products
- Competitively priced refinances and HELOCs, often advertised below prime
Considerations
- 2025 HMDA data shows Third Federal records in only 29 states plus D.C., and Ohio and Florida alone made up 52.9% of them
- Its purchase loans are fixed-rate, Smart Rate adjustable, jumbo and HomeReady mortgages; it does not offer FHA, VA or USDA loans.
- HELOCs carry a $275 annual fee
- Ohio accounted for 32.5% of Third Federal's 2025 HMDA records; outside Ohio, most contact is by phone or online
Where Third Federal Savings lends most
By federal HMDA records, Third Federal Savings's largest 2025 markets were Ohio, Florida, California, North Carolina and Georgia. Explore local rates, home prices and down-payment assistance for each:
States where Third Federal Savings is a top-15 lender
Ranked by home loans originated in 2025 (HMDA). Each state page compares Third Federal Savings with the other leading lenders there, including FHA and VA leaders and what their borrowers paid.
The verdict
Third Federal is a throwback in the best sense: a depositor-owned savings-and-loan that competes on low fees and low rates rather than breadth.
Its Smart Rate ARM, Rate Relock feature and no-fee home-equity products give value-minded borrowers real reasons to look, and 2025 volume of about $3.41 billion shows steady demand.
The catch is geography — it lends in a limited set of states, some refinance-only — so the first step is confirming you qualify where you live.
How to compare Third Federal Savings
Shopping a few lenders is the single most reliable way to save. Before you commit to Third Federal Savings:
- Get three or more Loan Estimates in a two-week window — the bureaus treat it as one inquiry.
- Compare the APR, not just the headline rate — it folds in the fees.
- Weigh service and loan-type fit, not price alone.
- Verify licensing: search Third Federal Savings on NMLS Consumer Access and match the NMLS ID to the one on your Loan Estimate. (Its LEI in federal HMDA data, 5493008CPTDVOS570626, is not a license number.)
Benchmark whatever you're quoted against today's this week's rate averages.
Third Federal Savings FAQ
Is Third Federal Savings a good mortgage lender?
Third Federal Savings is a licensed U.S. mortgage lender and one of the largest, roughly #34 of 60 in our roster by 2025 volume, best for low-cost fixed loans.
On price, its 2025 conventional borrowers' median APR was 0.28 percentage points below the typical lender's, with $3,525 in loan costs against $5,476 market-wide.
Whether it's right for you comes down to the rate and fees it quotes — compare its Loan Estimate with two or three others.
What are Third Federal Savings's mortgage rates today?
Third Federal Savings sets rates daily by loan type, credit score, down payment and points, so the rate that counts is the one on your Loan Estimate.
For context, the average 30-year fixed rate was 7.18% in Freddie Mac's survey for the week of November 5, 2026; in 2025, Third Federal Savings's conventional purchase loans closed at a median 6.30%, against 6.50% for all lenders.
How many mortgages does Third Federal Savings originate?
In 2025, Third Federal Savings originated about 21,298 home loans, roughly $3.4 billion in lending, per federal HMDA data — an average loan of about $160,091.
What loan types does Third Federal Savings offer?
Third Federal Savings offers Conventional, Jumbo, HELOC, Refi. Notable programs include fixed-rate mortgages in terms from roughly 5 to 30 years; Smart Rate adjustable-rate mortgage that adjusts to the Prime Rate with no margin added; rate Relock feature to lock a lower rate later without a new application or appraisal.
How do I verify Third Federal Savings is licensed?
Search the company's name on NMLS Consumer Access (nmlsconsumeraccess.org), the official registry of licensed mortgage companies and loan officers; the NMLS ID it shows is also printed on every Loan Estimate the lender issues. (The ID 5493008CPTDVOS570626 used on this page is the company's LEI, which identifies it in federal HMDA data — not a license number.)
This review is editorial and independent — Third Federal Savings did not pay for or approve it, and all figures are from public federal data. It is general information, not a recommendation or personalized advice. Confirm all terms directly with the lender.
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