Under the Truth in Lending Act (TILA), the right of rescission applies to which of the following transactions?
Correct Answer
B) Refinances and home equity loans on a primary residence, within 3 business days
Under TILA, the right of rescission gives borrowers 3 business days to cancel certain non-purchase transactions secured by their primary residence, such as refinances and home equity lines of credit (HELOCs). It does not apply to purchase money mortgages, commercial loans, or investment property loans.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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