Third Federal was founded in 1938 in Cleveland, OH, as a mutual association.
It offers loan products in 21 states and the District of Columbia through 21 full-service branches in Northeast Ohio, eight lending offices in Central and Southern Ohio, and 17 branches throughout the state of Florida.
Third Federal offers a selection of home loan products, providing both conforming and non-conforming loans to mortgage customers regardless of their financial situation.
Third Federal Mortgage Facts
- Services 21 states and the District of Columbia
- Offers a variety of mortgage deals and affordable rates for vacation home buyers, first-time buyers, and borrowers whose current home is still on the market
- It may require borrowers to take out escrow if they put less than 30 percent down on the home
- Once borrowers are approved, Third Federal charges one flat rate that is not based on their credit score
- Offers Low-Cost Smart Rate loans with closing costs of as little as $295
Overall
Initially servicing the state of Ohio alone, Third Federal has since expanded its business to offer loan products in 21 states. The financial institution extends flexible mortgage options at low costs to empower borrowers to buy their dream homes.
The bank’s offer includes affordable fixed and adjustable-rate mortgages as well as jumbo loans, bridge loans, vacation home financing, and other flexible options for first-time buyers, seasoned loan borrowers, and everyone in between.
Current Mortgage Rates
Third Federal Loan Specifics
This bank offers a variety of home mortgage products, including:
Fixed-Rate Mortgages
With fixed-rate loans, interest rates stay the same throughout the life of the loan. Third Federal offers fixed-rate mortgages with loan terms of 15 and 30 years. Homebuyers who plan on staying in their home for several years can benefit from fixed-rate mortgages.
Smart Rate Adjustable Rate Mortgage
Third Federal offers borrowers lower interest rates than they might receive with a fixed-rate loan. Borrowers who choose this option can save about $12,000 over the first five years.
The bank’s Rate Relock allows borrowers to “relock” their loan payments to the current 3/1 or 5/1 rates throughout the loan’s lifetime. These types of loan products are recommended for homeowners who may sell or refinance their homes in the next few years.
Third Federal $295 Low-Cost Mortgages
Individuals who don’t want to deal with steep closing costs can opt for this type of mortgage and pay only $295 in closing costs—Third Federal will cover the rest.
10-Year Mortgages
Homebuyers who want to pay their mortgage off as quickly as possible could benefit from 10-year home loans. These types of mortgages are a good choice for buyers with excellent savings on interest paid who can afford to keep up with higher payments over a 10-year period.
This option may also be especially advantageous for those wanting to benefit from historically low interest rates, which can offset the cost of larger monthly repayment amounts over a shorter loan period.
$750 First-Time Homebuyer Credit
Homebuyers who are investing in their first home can take advantage of this option. Third Federal puts a $750 credit toward the loan’s closing costs. Additionally, the bank allows first-time buyers to make down payments as low as 5 percent.
Jumbo Loans
Unlike other banks, Third Federal does not offer higher rates for jumbo mortgages. In fact, the company offers a rate reduction for jumbo loans over $766,550. These jumbo mortgages are available on all 3/1 and 5/1 Smart Rate loans and can benefit buyers who are investing in high-value properties that require larger loan amounts than Freddie Mac and Fannie Mae typically allow.
Bridge Loans
These types of loans allow borrowers to buy a new home while their house is still on the market. They can use the equity in their current home for the new home’s down payment and suspend payments toward the new mortgage until the first home is sold.
With this loan type, borrowers have the advantage of not having to pay principal or interest payments for the first 12 months of their bridge loan.
Vacation Home Financing
Third Federal offers low rates for borrowers interested in purchasing vacation homes. Unlike other mortgage lenders, it does not increase mortgage rates for secondary or investment properties. Vacation home financing through Third Federal is currently available in OH, FL, and KY.
Third Federal Loan Options: A Comprehensive Overview
| Loan Type | Features/Details |
|---|---|
| Fixed-Rate Mortgages | • Consistent Interest Rates Over 15 and 30 Years • Ideal for Long-Term Homeownership |
| Smart Rate Adjustable Rate Mortgage | • Lower Initial Rates, Potential $12,000 Savings in the First 5 Years • Flexible Rate Relock Option for Short-Term Homeowners |
| Third Federal $295 Low-Cost Mortgages | • $295 Closing Costs, Ideal for Those Avoiding High Upfront Costs |
| 10-Year Mortgages | • Rapid Payoff in 10 Years, Advantageous in a Low-Interest Environment |
| $750 First-Time Homebuyer Credit | • $750 Credit Towards Closing Costs • 5% Down Payment for First-Time Buyers |
| Jumbo Loans | • No Extra Rates for Jumbo Mortgages, With a Rate Reduction for Loans Over $766,550 |
| Bridge Loans | • Buy a New Home While the Current One Is on the Market • No Payments for the First 12 Months |
| Vacation Home Financing | • Low Rates for Vacation Homes in OH, FL, and KY, Unaffected by Property Type |
Third Federal Mortgage Customer Experience
Third Federal offers plenty of useful online resources and allows customers to apply for pre-approval through a simple online form that only takes a few minutes to complete. Applicants don’t have to provide their Social Security Number or contact information to receive a quote estimate.
The bank also has a mortgage rate calculator, an extensive FAQ section, and a Mortgage Purchase Guide, which advises individuals on how they should proceed when working with a mortgage lender.
Third Federal Lender Reputation
Founded in 1938, Third Federal has provided affordable home mortgage rates for decades under its Nationwide Mortgage Licensing System ID of 44940. The bank has an A- rating with the Better Business Bureau and has received only 17 customer complaints in the last three years.
- Date Collected: Nov. 7, 2018
Third Federal Mortgage Qualifications
| Credit Score | Quality | Ease of Approval |
|---|---|---|
| 760+ | Excellent | Easy |
| 700-759 | Good | Somewhat Easy |
| 621-699 | Fair | Moderate |
| 620 and below | Poor | Somewhat Difficult |
| No credit score | N/A | Difficult |
Reputable mortgage lenders look at borrowers’ credit scores when determining their rates and whether or not they should be approved at all. FICO reports that the industry standard credit score is 740.
With Third Federal, however, applicants who qualify for approval will receive the same rates as applicants with higher credit scores. Things may get trickier if the borrower has no credit history, as they may be required to apply with a cosigner.
Buyers can put less than 30 percent down on their home, but doing so may require them to consider escrow. This involves a third party, such as a title company or escrow agent, holding onto funds and documentation until both parties meet the contract terms and conditions.
Third Federal Phone Number & Additional Details
Homepage URL: https://www.thirdfederal.com/
Company Phone: 1-800-844-7333
Headquarters Address: Third Federal, 7007 Broadway Ave., Cleveland, OH 44105
The Bottom Line – Third Federal Mortgage Rates Review
Third Federal, established in 1938, has firmly positioned itself as a leading mortgage lender with an expansive reach across 21 states. Its diverse mortgage products cater to a wide spectrum of homebuyers, from first-timers to seasoned investors.
Noteworthy for its commitment to fairness, the bank offers consistent rates irrespective of credit scores, ensuring greater accessibility to potential homeowners. With a robust online platform, valuable resources, and a commendable reputation reflected in its A- BBB rating, Third Federal remains a trusted choice for those seeking transparent and flexible home loan solutions.
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Product Name: Third Federal Mortgage Product Description: Third Federal Mortgage, headquartered in Cleveland, Ohio since 1938, offers a comprehensive range of home loan products across 21 states. Catering to diverse financial situations, they provide both conforming and non-conforming loans, making home ownership more accessible to a wider range of customers. Summary Established as a mutual association, Third Federal Mortgage has grown substantially over the decades, now serving clients through numerous branches in Ohio and Florida and in other states. Beyond traditional fixed and adjustable-rate mortgages, they offer specialized solutions like jumbo loans, bridge loans, and vacation home financing. Their innovative approach, such as the Low-Cost Smart Rate loan, reflects a commitment to customer-centric solutions tailored to individual needs. Pros Cons
Third Federal Mortgage Rates Review
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