Frost Bank: 2025 Home Equity Review
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At a glance
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate.
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Loan amount
Starting at $2,000 (HELoans)/$8,000 (HELOC)
Min. credit score required
640-680
Repayment terms
10-year draw period/10-year repayment term for HELOC; 7-30 years for home equity loans
Funds available in
30 days
Editor's take
Frost Bank’s home equity products are designed for budget-conscious homeowners and earn high marks for their low loan amounts, credit score criteria and fees. The lender’s key drawback: availability — it only operates in the state of Texas.
Frost Bank overview
Established in 1868 in the back of a small mercantile store in San Antonio, Frost has developed into a major financial institution that trades publicly on the New York Stock Exchange. It operates solely in Texas, where it has approximately 200 financial centers. In addition to HELOCs and home equity loans, the company offers banking, insurance and investment products.
Home equity products offered
Frost Bank offers a variable-rate HELOC and two fixed-rate home equity loans, including a standard home equity loan and its Progress home equity loan, geared to lower-income homeowners.The Progress has considerably cheaper interest rates, but is available only to those making less than 80 percent of their area’s median income.
With its home equity loans, you can choose from a variety of repayment terms: seven years to 20 years for its standard loan and seven to 30 years for its Progress home equity loan. Its HELOCs only have one term: 20 years.
The maximum amount you can borrow for both options is up to 80 percent of your home’s appraised value. It must be your primary residence.
Pros and cons of Frost Bank
Pros
- Frost’s home equity products have no application/annual fees, closing costs or prepayment penalty.
- If you make automatic payments via a Frost savings or checking account, you’ll get a rate deduction of 0.25 percent (unless the loan is a first lien greater than $250,000.)
- The bank offers a special home equity loan for lower-income applicants, with sharply discounted APRs.
Cons
- Frost Bank only operates in Texas.
- To get a HELOC, you’ll need to open a deposit account with the bank. (This doesn’t apply to home equity loans.)
- No lock-in-rate option available on HELOCs.
How Bankrate scored
Affordability: 5/5
- APR: Frost’s rates are competitive, significantly below the Bankrate national average.
- Fees: Frost’s HELOC and home equity loans don’t carry any prepayment penalties, application and annual fees — a rarity among lenders.
Thanks to its low APRs and lack of fees, Frost Bank scores a perfect 5 out of 5 for affordability.
Availability: 2.6/5
- Loan products: Frost offers HELOCs and two home equity loan products, including a home equity loan geared to low-income borrowers.
- Footprint: Frost’s home equity products are only available in Texas; you will be out of luck if you live in another state.
- Credit score: Frost has a minimum credit score requirement of 640-680, on the low side by home equity lending standards.
- Loan minimum: Frost’s minimums ($2,000 for HELoans, $8,000 for HELOCs) are quite low, compared to other typical home equity lenders.
Despite its low loan and credit score minimums, Frost earns a 2.6 out of 5 for availability because of its limited national reach and HELOC draw requirements.
Borrower experience: 3.9/5
- Rate transparency: Frost’s advertised APRs are easy to find on its website, and it lists them in detail by loan size.
- Convenience: Frost lets you apply for loans online, and also offers an app that lets you make payments and check loan status. It seems to require that closings be in person at a branch.
- Customer service: Customers have multiple contact methods, including phone, online portal, email and visiting its 200 branch locations in Texas (with more to come in 2025).
- Fixed-rate options: Frost has two fixed home equity loan options, but does not offer a fixed-rate HELOC.
Frost Bank scores a 3.9 out of 5 for its borrower experience, losing points because it doesn’t offer a fixed-rate HELOC or allow remote closings.
Bankrate insight
You can tap into your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations.
However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.
Frost Bank’s reputation
Frost Bank gets an A- rating from the Better Business Bureau, but is not accredited. For the 15th year in a row, Frost Bank earned the highest ranking for banking customer satisfaction in Texas, according to the J.D. Power 2024 U.S. Retail Banking Satisfaction Study. Out of more than a dozen reviews, the company earns a 2.5 rating on Trustpilot.
How to qualify for a home equity loan with Frost Bank
Your property must be a primary residence located in Texas, and your combined loan-to-value (CLTV) ratio must be 80 percent or less to qualify for a home loan with Frost Bank. The minimum credit score requirement is between 640 and 680. You’ll need to open a Frost deposit account for a HELOC.
When your loan is approved, you will close on your loan at one of Frost’s financial centers unless the amount is greater than $500,000.
How to apply for a home equity loan with Frost Bank
You can apply for a home equity loan or HELOC through Frost’s website or by calling 800-513-7678. As is typical with a home equity loan application, you will need a government-issued ID, your Social Security Number and information about your income and home. Be prepared to enter in the months the loan term you are considering. The online application process takes about 15 minutes to complete.
Frost Bank customer ratings and reviews
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