Frost Bank
- Home equity loan, HELOC
- Home equity loan: From 7.56%; HELOC: From 9.15%
- Not disclosed
- 866-376-7889
Frost Bank is headquartered in San Antonio and was founded in 1868. In addition to home equity loans and home equity lines of credit (HELOCs), Frost offers banking and investment services, as well as other types of loans such as personal loans.
Frost’s home equity loans and HELOCs are only available to borrowers in Texas. To take out a home loan with Frost, you must open a deposit account with the bank.Â
Despite its limited national availability, Frost is on our list of the best home equity loan and HELOC lenders because of its price transparency, quick application process and accessibility for lower-income borrowers.
Frost Bank: At a glance
| Products offered | Home equity loan, interest-only HELOC |
| APR range | Home equity loan: From 7.56% HELOC: From 9.15% |
| Loan amounts | Home equity loan: From $2,000HELOC: From $8,000Â |
| Credit score requirements | Not disclosed |
| Repayment terms | Home equity loan: Seven to 20 yearsHELOC: 10-year draw period, 10-year repayment period |
| Average time for approval | Not disclosed |
Rates as of June 26, 2024
Pros and cons
Pros
- Minimal fees: Many of the bank’s fees are waived for home loan customers, such as applicant and prepayment fees.
- Flexible repayment options for home equity loans: You can choose to repay your home equity loan over the course of seven to 20 years, giving you more options that can work for your budget.
- Option for lower-income borrowers: If you make less than 80% of the area median income, you may qualify for the Frost Progress Home Equity loan, which comes with significantly lower APRs.
Cons
- Limited national availability: Both home equity loans and HELOC options are only available to homeowners in Texas.
- You must be a Frost Bank customer: To qualify for a loan, you must first join Frost and open a deposit account. You’re also required to sign up for autopay if you want the 0.25% rate discount.
Home equity loan options
Home equity loan: Depending on how much equity you have, you can borrow anywhere from $2,000 to more than $50,000 with a Frost home equity loan. The bank offers loan terms of seven, 10, 15 and 20 years.Â
Frost Progress Home Equity loan: Homeowners who make less than 80% of the area median income are eligible for the bank’s Progress Home Equity loan. Borrowers can take advantage of significantly lower APRs.Â
Interest-only HELOC: You can borrow up to 80% of your home’s value and get access to a revolving line of credit with a Frost HELOC. The bank offers a 10-year draw period and a 10-year repayment period. During the draw period, you’ll make payments on the interest only. Once you enter the repayment period, you’ll make payments on both the principal and interest.
Fees
With Frost, there’s no application, annual or prepayment fees. The bank will also waive the $15 monthly service charge on new Frost Plus Accounts if you take out a home equity loan or HELOC.
How to qualify
You need at least 80% of home equity available to qualify for a home loan with Frost Bank. Your property must be in Texas and your primary residence. Frost doesn’t list its minimum credit score requirement, but most lenders prefer that you have a score of 700 or higher to receive the best rates. However, some lenders will accept lower credit scores depending on other financial factors, such as how much equity you have built up in your home.
In addition to your equity and credit score, you’ll need to show proof of income and have a reasonable debt-to-income ratio. Most lenders prefer a DTI ratio of 36% or less, but no more than 43%.
Applying for a home equity loan or HELOC with Frost
You’ll need to provide some basic personal information when starting your loan application. Applying online or over the phone only takes 15 minutes, according to the bank.Â
You’ll have to give identifying information including your contact information, a government-issued ID, such as a state-issued driver’s license, and your Social Security number. You’ll also be asked to provide specific details about your income and home, so be sure your documents -- such as pay stubs, homeowner’s insurance and mortgage statements -- are readily available.
Customer service
You can contact Frost Bank 24 hours a day, seven days a week, over the phone and on its website, or go to a local branch during business hours. When it’s time to close your home equity loan (provided it’s $500,000 or less), you’ll need to go to a physical branch to sign the paperwork, as required by Texas law.
Live phone support:
- Home loans: 866-376-7889
- General inquiries: 800-513-7678
Frost Bank
- Home equity loan, HELOC
- Home equity loan: From 7.56%; HELOC: From 9.15%
- Not disclosed
- 866-376-7889
Frost Bank is headquartered in San Antonio and was founded in 1868. In addition to home equity loans and home equity lines of credit (HELOCs), Frost offers banking and investment services, as well as other types of loans such as personal loans.
Frost’s home equity loans and HELOCs are only available to borrowers in Texas. To take out a home loan with Frost, you must open a deposit account with the bank.Â
Despite its limited national availability, Frost is on our list of the best home equity loan and HELOC lenders because of its price transparency, quick application process and accessibility for lower-income borrowers.
Frost Bank: At a glance
| Products offered | Home equity loan, interest-only HELOC |
| APR range | Home equity loan: From 7.56% HELOC: From 9.15% |
| Loan amounts | Home equity loan: From $2,000HELOC: From $8,000Â |
| Credit score requirements | Not disclosed |
| Repayment terms | Home equity loan: Seven to 20 yearsHELOC: 10-year draw period, 10-year repayment period |
| Average time for approval | Not disclosed |
Rates as of June 26, 2024
Pros and cons
Pros
- Minimal fees: Many of the bank’s fees are waived for home loan customers, such as applicant and prepayment fees.
- Flexible repayment options for home equity loans: You can choose to repay your home equity loan over the course of seven to 20 years, giving you more options that can work for your budget.
- Option for lower-income borrowers: If you make less than 80% of the area median income, you may qualify for the Frost Progress Home Equity loan, which comes with significantly lower APRs.
Cons
- Limited national availability: Both home equity loans and HELOC options are only available to homeowners in Texas.
- You must be a Frost Bank customer: To qualify for a loan, you must first join Frost and open a deposit account. You’re also required to sign up for autopay if you want the 0.25% rate discount.
Home equity loan options
Home equity loan: Depending on how much equity you have, you can borrow anywhere from $2,000 to more than $50,000 with a Frost home equity loan. The bank offers loan terms of seven, 10, 15 and 20 years.Â
Frost Progress Home Equity loan: Homeowners who make less than 80% of the area median income are eligible for the bank’s Progress Home Equity loan. Borrowers can take advantage of significantly lower APRs.Â
Interest-only HELOC: You can borrow up to 80% of your home’s value and get access to a revolving line of credit with a Frost HELOC. The bank offers a 10-year draw period and a 10-year repayment period. During the draw period, you’ll make payments on the interest only. Once you enter the repayment period, you’ll make payments on both the principal and interest.
Fees
With Frost, there’s no application, annual or prepayment fees. The bank will also waive the $15 monthly service charge on new Frost Plus Accounts if you take out a home equity loan or HELOC.
How to qualify
You need at least 80% of home equity available to qualify for a home loan with Frost Bank. Your property must be in Texas and your primary residence. Frost doesn’t list its minimum credit score requirement, but most lenders prefer that you have a score of 700 or higher to receive the best rates. However, some lenders will accept lower credit scores depending on other financial factors, such as how much equity you have built up in your home.
In addition to your equity and credit score, you’ll need to show proof of income and have a reasonable debt-to-income ratio. Most lenders prefer a DTI ratio of 36% or less, but no more than 43%.
Applying for a home equity loan or HELOC with Frost
You’ll need to provide some basic personal information when starting your loan application. Applying online or over the phone only takes 15 minutes, according to the bank.Â
You’ll have to give identifying information including your contact information, a government-issued ID, such as a state-issued driver’s license, and your Social Security number. You’ll also be asked to provide specific details about your income and home, so be sure your documents -- such as pay stubs, homeowner’s insurance and mortgage statements -- are readily available.
Customer service
You can contact Frost Bank 24 hours a day, seven days a week, over the phone and on its website, or go to a local branch during business hours. When it’s time to close your home equity loan (provided it’s $500,000 or less), you’ll need to go to a physical branch to sign the paperwork, as required by Texas law.
Live phone support:
- Home loans: 866-376-7889
- General inquiries: 800-513-7678
