After a residential loan is approved and closed, the borrower has three business days during which time the loan may be rescinded. If the borrower does change his or her mind and rejects the loan, the borrower may still be liable for certain origination costs. The rescission period is applicable for mortgage refinances on owner-occupied residential properties. However, there are NO rescission period required for purchase transactions or refinances on investment properties. For more information, see the "Refinance Loan" article in the "Loan Programs" section.
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