Finance
In Massachusetts, the 'three-day right of rescission' under the Truth in Lending Act (TILA) allows a borrower to cancel a refinance or home equity loan within 3 business days of closing. This right applies to:
AAll mortgage loans including purchase money mortgages
BNon-purchase money loans secured by a principal residence (refinances, HELOCs, second mortgages)✓ Correct
COnly FHA and VA loans
DAll loans over $100,000
Explanation
The TILA right of rescission applies to non-purchase money credit transactions secured by the borrower's principal residence (refinances, home equity loans, HELOCs). It does NOT apply to purchase money mortgages.
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