Your Right of Rescission on Home Loans
Federal law allows you to cancel certain home loan transactions within three days.
Home loans can be a significant financial commitment, and while you can't back out of a mortgage loan on a new purchase, federal law provides a cancellation option for refinance loans, as well as most reverse mortgages and home equity loans and lines of credit.
With these types of home loans, borrowers have the chance to rethink their decision for three days after they close on an eligible loan – called the right of rescission. While it's still best to do your due diligence before you apply for a home loan, the right of rescission gives you the option to cancel after it closes. Find out more about how this process works and why the right of rescission was established in the first place. Read the full article on U.S. News & World Report.