Put your home to work for you with a home equity line of credit

What Can a Home Equity Line of Credit Be Used For?

While most people use a Home Equity Line of Credit (HELOC) for home improvement projects, it can be used to cover a variety of planned and unexpected expenses. Because a Home Equity Line of Credit allows you to reuse as you repay, you have flexibility in how little or how much you use. What’s more, you only pay interest on the amount you use and that interest may be tax deductible1.

So, what can you use a Home Equity Line of Credit (HELOC) for? Sometimes the unexpected happens. That’s when the flexibility of Home Equity Line of Credit comes in handy. Let’s say your roof starts leaking and you need to repair it to prevent further damage to your home. Or maybe it’s time to consolidate your higher interest rate debt into one monthly payment.

A Home Equity Line of Credit (HELOC) can also be used for planned expenses, like tuition costs, home remodeling projects, to purchase or repair a car, or take a much-needed vacation. Since you may not know how much these expenses may end up costing, a Home Equity Line of Credit can be a good option because you can use as little or as much as you need.


Home Equity Line of Credit Benefits and Features


Choose from two monthly payment options: interest-only or principal and interest. Access your home equity line of credit easily via checks or online account transfers, up to your available credit limit. Choice of a Fixed Rate Lock Option on outstanding balances2

competitive money market rates


No minimum draw requirement to receive the best rate. Plus no application fee, appraisal fee or closing costs2.

affordable interest payments

Budget Friendly

Ability to reuse as you repay and you only pay interest on the amount you use. Plus the interest you pay may be tax deductible1. You can also enjoy a rate discount on our already-competitive rates when you set up automatic payments from any Santander Bank checking account.

Home Equity Loan Payment Examples

State Draw Amount Principal and
Interest Payment
MA, RI, NJ, PA $25,000 $187.50 $83.33 4.00%
CT, NH, DE, ME, VT, DC $25,000 $192.71 $88.54 4.25%
NY and MD $25,000 $197.92 $93.75 4.50%
MA, RI, NJ, PA $50,000 $375.00 $166.67 4.00%
CT, NH, DE, ME, VT, DC $50,000 $385.42 $177.08 4.25%
NY and MD $50,000 $395.83 $187.50 4.50%
Payment examples do not include real estate taxes, homeowners insurance, or other amounts. Santander does not escrow (or charge borrowers for escrow waiver) on home equity lines of credit.

Learn More About Home Equity Line of Credit Uses

Have an idea about how you’ll be using a Home Equity Line of Credit (HELOC)? Learn more about specific home equity line of credit uses, and discover why a Home Equity Line of Credit may be a smart borrowing option for each.


1Check with your tax advisor

2Rates: To get the Home Equity Line of Credit (Line) Fixed-Rate Introductory Annual Percentage Rate (APR) and variable rate APR shown, payments must be automatically deducted (ePay) from a Santander checking account. The Introductory APR will apply only during the first six (6) billing cycles after your Line is opened. Thereafter, the APR for any existing balance or future advances will convert to the applicable variable rate APR. This APR may vary monthly and is based on the U.S. Prime Rate published in the Money Rates table of The Wall Street Journal on the first business day of the calendar month. The variable APR that you will receive will range between Prime minus 0.50 percentage points (currently 3.50% APR) and Prime plus 3.00 percentage points (currently 7.00% APR), and will depend on the following factors: amount of credit limit received, lien position, location of pledged property, and ePay election. If ePay is discontinued, the APR will increase by 0.25 percentage points. The Line must be in a first or second lien, secured by your 1-4 family primary residence located in MA, RI, CT, NH, NJ, NY, PA, DE, ME, VT, or DC, and total mortgage loans to be secured by this property must not exceed 80.00%. Line amounts must be between $10,000 and $750,000. Other rates and terms apply to investment properties and loan-to-value ratios up to 89.99%. The APR will never be higher than 18.00%. Fees: There is a $450 termination fee if you close the Line within the first 36 months of account opening. If your property is located in New York, the Bank will pay the mortgage tax at closing on your behalf, however, it must be reimbursed if the Line is closed within 36 months of account opening. An annual fee, if any will be charged during the draw period beginning in the 13th month after the account is opened and each year thereafter on the anniversary date. The amount of the annual fee will be $0, $25, or $50, based on the type of deposit account you have with Santander at the time the fee is assessed. Fixed-Rate Lock Option fee is $50. Balances you choose to lock in at a fixed rate of interest must be repaid in substantially equal monthly payments of both principal and interest. General Information: If your home is on the market, other rates and terms are available. A $175 fee applies if your property is held in trust. Property insurance is required. Flood insurance may be required. Rates and terms are accurate as of 4/3/2017, based on a current Prime Rate of 4.00% and are subject to change. Lines subject to approval.


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