How to Pay for Home Improvements

Just because you’ve outgrown your living space doesn’t necessarily mean it’s time to go house hunting. You may love your home and its location but you need a little extra room, or you may want to give a familiar room a new look. That’s when financing home renovations makes sense. 

A Home Equity Line of Credit (HELOC) is a budget-friendly home improvement financing option with no application fees, appraisal fees, or closing costs. What’s more, you only pay interest on the amount of credit you use and that interest may be tax deductible2.         

You can choose from two monthly payment options: interest only or principal + interest, plus our fixed rate lock option allows you to set up predictable monthly payments by converting all or a portion of your outstanding balance to a fixed rate loan, up to your available credit limit.

Using a Home Equity Line of Credit (HELOC) for Home Improvement Financing

With a line of credit for home improvements, you can finance projects big or small. Whether you are upgrading your kitchen or bathroom, adding another room to your home— or maybe you’d like to spruce up your outdoor space with new landscaping. Using HELOC for renovations can make your home feel new again.

A Home Equity Line of Credit (HELOC) allows you to reuse as you repay for up to 10 years2, so when you’re making improvements to your home, there’s built-in flexibility to help you see your project through to completion.

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Key Features of Using a Home Equity Line of Credit (HELOC) for Home Improvements:

easy access to your money icon


Renovation payments made easy and conveniently. Access your available funds with a check or transfer from online banking.

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Use and reuse your line of credit as you re-pay for up to 10 years. Easily access funds from your HELOC to make necessary improvements. Plus the flexibility of the fixed rate lock option.

competitive money market rates


Enjoy a rate discount on our already-competitive rates when you set up automatic payments from any Santander Bank account .


Home Equity Line of Credit 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.

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2 Rates: 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 3.75% APR) and Prime plus 3.00 percentage points (currently 7.25% APR), and will depend on the following factors: amount of credit limit received, lien position, location of pledged property, and ePayelection. 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, MD, 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 or Maryland, 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. $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 7/3/2017, based on a current Prime Rate of 4.25% and are subject to change. Lines subject to approval.

Accounts must be in good standing. Applies to new net retail purchases only.

▲▲▲Santander® Ultimate Cash Back® Annual Percentage Rates (APRs) and Fees: 3% introductory Annual Percentage Rate (APR) for 12 billing cycles on Balance Transfers made within 90 days of opening your account. After the introductory period, a variable APR for Balance Transfers from 16.24% to 25.24% based on the Prime Rate and your creditworthiness. There is no grace period on Balance Transfers. Also if you take a Balance Transfer offer, this means that unless your purchase APR is at an introductory or promotional 0% APR, you will pay interest on new purchases from the date made if you do not pay all balances, including the promotional Balance Transfer, in full by the next payment due date appearing on your statement. Variable APR for Purchases from 16.24% to 25.24% based on the Prime Rate and your creditworthiness when you open your account. Cash advance APR of 26.74%. Minimum finance charge of $1.50. Penalty APR of 31.74%, and loss of any introductory or promotional rate, if any, which may apply indefinitely to your account if you miss or make a late payment or otherwise default. There are no Annual, Balance Transfer, Cash Advance, Foreign Transaction, or Returned Payment fees. Finance charges still apply. Each time we do not receive the Minimum Payment Due in full by the Payment Due Date, we will charge you a Late Fee of $25 for the first late fee in a 6-month period and a $35 fee for each late payment until there are 6 consecutive months with no late payments. However, we will never charge a Late Payment Fee exceeding the Minimum Payment Due that is late. Rates effective as of . Rates are subject to change. 1.5% Cash back is earned on new net retail purchases (qualifying purchases less credits, returns, and adjustments) and can be redeemed for statement credit, gift cards, electronic certificates, or merchandise. Cash back cannot be earned on balance transfers, cash advances, purchases of money orders and other cash equivalents, purchases made by or for a business purpose, fees, interest charges, unauthorized / fraudulent transactions, and certain other charges. Cash back balance does not expire for accounts in good standing. Earn $100 cash back via statement credit after you spend $500 on new net retail purchases within the first 90 days of opening your account, provided the account is in good standing. This credit can take up to 6 weeks to be processed. Other terms and conditions apply. Credit card accounts are subject to approval.

* Bonus Offer Details: Accounts must be in good standing. Applies to net new retail purchases only. Net new retail purchases: qualifying purchases less credits, returns, and adjustments. Balance Transfers, Cash Advances, including purchases of money orders or other cash equivalents, purchases made by or for a business purpose, fees, interest charges, unauthorized/fraudulent transactions, and certain other charges do not earn cash back credit. The cash back balance on your account does not expire for accounts in good standing. Cash Back in the form of statement credit upon your request. Receive the $100 cash back bonus via statement credit: When you spend $500 on net new retail purchases using the Santander® Ultimate Cash Back® credit card, or when you spend $1,000 on net new retail purchases using the Bravo credit card, within the first 90 days of opening your account. $100 cash back is credited to customer account within 6 weeks after spending requirements are met. Other terms and conditions apply.

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