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Frost Bank: 2022 Home Equity Review

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Established in 1868 in San Antonio, Texas, Frost Bank has been offering financial services to residents of the Lone Star state for decades. Frost has over 160 financial centers across Texas and more than 1,200 ATMs. This lender offers several financial products and services, including both home equity loans and home equity lines of credit (HELOCs). 

Both home equity products offer low minimum APRs and flexible borrowing limits. For residents of Texas looking for home equity products, Frost Bank could be the way to go.

Loan types offered Home equity loan, HELOC
APR range Home equity loan: Starting at 4.49% (with autopay)
HELOC: 3.74% to 18% (with autopay)
Loan amount range Home equity loan: $2,000 to 80% of home’s value
HELOC: $8,000 to 80% of home’s value
Minimum credit score required Not specified
Repayment terms Home equity loan: 7 to 20 years
HELOC: 10-year draw period and 10-year repayment period
Average time to approval Not specified


Here are some of the benefits you’ll enjoy if you decide to use one of Frost Bank’s home equity loan products:

  • No closing costs: For home equity loans, there are no closing costs if your loan amount is between $2,000 and $500,000. If you borrow over $400,000 with a HELOC, you might encounter closing costs.
  • Minimal fees: There are no application fees or annual fees for home equity loans and HELOCs. Also, there are no prepayment fees for either option, so you can repay your oan early without being charged extra.
  • Rate discount for automatic payments: If you make automatic payments with a Frost savings or checking account, you’ll get a rate deduction of 0.25 percent. The only time this doesn’t apply is if your mortgage is paid off and your loan request is greater than $250,000.
  • Competitive interest rates: Compared with the current average rates for home equity loans — 5.36 percent for a $30,000 loan, according to Bankrate data — Frost has a good starting interest rate. As of December 2021, the lowest advertised APR on its website for home equity loans is 4.49 percent.


Look out for these potential drawbacks when applying for a home equity loan product with Frost Bank:

  • Deposit account may be required: For home equity loans, you don’t need a deposit account with Frost. However, if you get approved for a HELOC, a deposit account will be required upon closing.
  • Only available in one state: Since the lender only operates in Texas, you can’t take out a home equity loan or HELOC with this bank if you live in another state.

Types of fees charged

With Frost Bank, you don’t have to worry about paying prepayment fees, application fees or annual fees. In addition, you can avoid closing fees in most cases. However, if you take out a home equity loan greater than $500,000 or a HELOC greater than $400,000, you might have to pay closing costs. There is also a $15 monthly service charge, which Frost waives for new Frost Plus accounts.

Loan products offered

Frost Bank offers fixed-rate home equity loans and variable-rate HELOCs. For home equity loans, the minimum borrowing amount is $2,000. If you take out a HELOC instead, the minimum borrowing amount is $8,000. The maximum amount you can borrow for both options is up to 80 percent of your home’s appraised value.

Applicants can choose from a variety of repayment terms with the home equity loan option; terms range from seven to 20 years. However, HELOCs only have one repayment term available: borrowers have a 10-year draw period where they are only responsible for paying interest and a 10-year repayment period where principal and interest payments are due.

How to qualify for a home equity loan with Frost

Frost Bank doesn’t list criteria for income, credit score or debt-to-income ratio on its website. However, according to a representative, there is no minimum credit score requirement and the maximum debt-to-income ratio is 50 percent.

Although you do not need to have a bank account with Frost to take out a home equity loan, you will need to open a deposit account there for a HELOC at the time of closing. In addition, the combined loan to value ratio must be 80 percent or less.

How to get started

To get started, you can apply for a home equity loan through Frost’s website or by dialing 866-376-7889 to speak with a banker. According to the website, the online application process takes about 15 minutes to complete.

Here’s some information the lender may need from you:

  • Value of property.
  • Homeowners insurance amount.
  • Property tax and HOA dues amounts.
  • Mortgage statements.
  • Pay stubs and tax returns.
  • Social Security number.
  • Driver’s license.

If you’re applying by telephone, the lender may require that you estimate your income. However, if you apply online, the lender might require you to upload your proof of income through pay stubs and tax returns.

Once you’re approved, you can close your loan at one of the bank’s financial centers if your loan amount is less than $500,000.

How Bankrate rates Frost Bank

Overall Score 4.5 Scoring factors
Availability 4.3 Quick application and no minimum credit score requirement, but it only lends in Texas.
Affordability 4.6 Frost Bank’s minimum APR is competitive, it offers an autopay discount and there are minimal fees.
Customer Experience 4.5 Both the application and account are available online, it offers autopay and it has a well-rated mobile app.

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Raija Haughn
Raija Haughn is an associate writer for specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term.