Homeowners and prospective homebuyers of modest means in the Lone Star State have some new options for more affordable borrowing, even in the current volatile financial climate. Frost, the subsidiary of Cullen/Frost Bankers Inc. and one of the largest banks based in Texas, has unveiled its Progress Home Equity Loan, designed to offer funding to low-to-moderate income homeowners at competitive rates and terms.
“At Frost, everyone is significant, and introducing products like this, especially when interest rates are high, demonstrates our commitment to making sure everyone has a place at Frost,” says Phil Green, chairman and CEO. “The Frost Progress Home Equity Loan – along with our new Progress Mortgage – will make people’s lives better by providing funding at low rates and affordable terms to increase their sense of financial belonging.”
Owners of single-family residences as well as condominiums and townhomes are eligible for the Frost Progress Home Equity Loan. Homeowners can qualify if their income is no greater than 80% of their county’s median family income (as defined by the Federal Financial Institution Examination Council). The Progress Home Equity Loan is available for terms of 10, 20, 25 and 30 years, and in most cases borrowers will have no closing costs. There is no maximum loan amount, but the maximum loan-to-value percentage is 80%.
The new Progress Home Equity Loan is a companion to the Frost Progress Mortgage, which the company is introducing across Texas as it expands its new mortgage lending operations. Like the Progress Home Equity Loan, the Progress Mortgage is available to borrowers with no greater than 80% of their county’s median family income, and it offers competitive rates with substantially lower closing costs. The Progress Mortgage also offers 100% financing – meaning borrowers don’t have to make a down payment – and no required private mortgage insurance.
