What Is Right of Rescission?
The right of rescission is a federal Truth in Lending Act protection giving homeowners three business days to cancel certain refinance or home equity loans on their primary residence — funds can't be disbursed until that period expires, sometimes noted as a transaction being "subject to statutory rescission."
Why It Matters
This right applies to refinances and home equity loans on a primary residence, not to a purchase mortgage — closing on a home purchase isn't subject to the same waiting period.