Frost Bank: 2022 Home Equity Review

This top-rated Texas bank offers both home equity loans and HELOCs for homeowners in the Lone Star State.

Frost Bank is headquartered in San Antonio and was founded in 1868. It's one of the 50 biggest banks in the US, with more than 4,700 employees and 170 financial centers. 

Frost Bank logo with blue background
Frost Bank

Frost was ranked first in customer satisfaction in the J.D. Power Retail Banking report for Texas. In addition to home loans, Frost offers banking and investment services, as well as other types of loans such as personal. Although Frost only serves customers in Texas, it offers competitive interest rates for its home equity loans and home equity lines of credit, or HELOCs, for residents of the Lone Star State. To take out a home loan with Frost, you must first open a deposit account with the bank.

Frost Bank: At a glance

Types of loans offered Home equity loan HELOC
APR range Starting at 5.75% Starting at 5.34%
Loan amounts Starting at $2,000 Starting at $8,000
Credit score requirements N/A N/A
Repayment terms Seven to 20 years 10-year draw, 10-year repayment
Average time for approval N/A N/A

Frost Bank is best suited for homeowners who live in Texas and who don't need a large loan. You can apply for either a home equity loan or a HELOC with Frost, provided it's for your primary residence. Mobile homes don't qualify. 

Homeowners are able to borrow up to 80% of their home's value when taking out either a home equity loan or a HELOC with Frost Bank.

What we like

  • Minimal fees: Many of the bank's fees are waived for home loan customers, such as application and prepayment fees.
  • Flexible repayment options: You can choose to repay your home equity loan from multiple term lengths that range from seven to 20 years, giving you more options that can work for your budget.
  • Auto-pay discount: You'll receive a 0.25% discount on your rate if you sign up for auto-pay and a Frost account. 

What we don't like

  • Limited availability: Both home equity loan and HELOC options are only available to homeowners in Texas.
  • You must be a Frost Bank customer: To qualify for a loan, you must join Frost and open a deposit account. You're also required to sign up for auto-pay if you want the 0.25% discount.

Home equity loan options

Frost Bank offers home equity loans and HELOCs, as well as mortgages and refinancing. For both home equity loan and HELOC options, the maximum amount you can borrow is 80% of your home's value.


With Frost, there's no application, annual or prepayment fees. The $15 monthly service charge for a bank account is also waived for both home equity loans and HELOCs.

How to qualify

As mentioned, 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 be 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, or DTI, ratio. Most lenders prefer a DTI ratio of 36% or less, but no more than 43%.

Getting started

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

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