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Frost Bank: 2024 Home Equity Review

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At a glance

Bankrate Score
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2.9
Rating: 2.9 stars out of 5
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Bankrate Score

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Loan amount

Starting at $8,000 for HELOC; Starting at $2,000 for home equity loan

Credit Good

Min. credit score required

640-680

Rates

Repayment terms

10-year draw period and 20-year repayment term for HELOC; 7 years to 20 years for home equity loan

Funds available in

30 days

Frost Bank features

Here's a breakdown of some of the benefits and drawbacks of Frost Bank home equity loans.

Benefits

  • You won’t pay any closing costs for a home equity loan with Frost Bank if the amount is between $2,000 and $500,000. (If you borrow over $400,000 with a HELOC, though, you might.) There are no application or annual fees, either, nor prepayment penalties.
  • If you make automatic payments via 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 is greater than $250,000.)

Drawbacks

  • Since Frost Bank only operates in Texas, you can’t take out a home equity loan or HELOC with this bank if you live anywhere else.
  • To get a HELOC, you’ll need to create a deposit account with the bank. (This doesn’t apply to home equity loans.)

Home equity loan products offered

Frost Bank offers fixed-rate home equity loans and variable-rate HELOCs.

The minimum borrowing amount for a home equity loan 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. With the home equity loan, you can choose from a variety of repayment terms: seven years to 20 years. HELOCs only have one repayment term: 20 years.

Types of fees charged

With a home equity product from Frost Bank, you don’t have to worry about paying prepayment, application or annual fees. In addition, you won’t pay closing costs unless you take out a home equity loan greater than $500,000 or a HELOC greater than $400,000. There’s also a $15 monthly service charge, which Frost waives for new Frost Plus accounts.

How to qualify for a home equity loan with Frost Bank

There’s no minimum credit score requirement for a home equity product, according to a Frost Bank representative, and the maximum debt-to-income (DTI) ratio is 50 percent. In addition, the combined loan-to-value (CLTV) ratio must be 80 percent or less. Although you don’t need to have a bank account with Frost to take out a home equity loan, you’ll need to open a deposit account for a HELOC.

How to apply with Frost Bank

You can apply for a home equity loan or HELOC through Frost’s website or by calling 800-513-7678. The online application process takes about 15 minutes to complete.

How Bankrate scored Frost Bank

Affordability 6.4/10
Availability 5.4/10
Borrower experience 5.7/10

Frost Bank customer ratings and reviews

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