Contracts
In Colorado, a 'right of rescission' on a refinance mortgage under the Truth in Lending Act gives the borrower:
AThe right to rescind only if the loan rate is above market
B3 business days after consummation to cancel the loan on their primary residence✓ Correct
C30 days to cancel the loan
DNo rescission right on purchase loans
Explanation
Under TILA, borrowers have a 3-business-day right of rescission on refinance loans and home equity loans secured by their primary residence. This right does NOT apply to purchase transactions — only to refinancing of a principal dwelling.
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