Right of rescission
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Definition
The right of rescission is a federal right to cancel certain refinance or home-equity credit transactions after signing. Official consumer material states that a purchase-money mortgage used to buy a home does not carry this cancellation right.
In plain English
Some mortgage transactions can be canceled for a short time after signing. Official CFPB consumer material calls that cancellation right the right of rescission. A loan used to buy the home is not in that category. This page names the right. It does not turn the cooling-off period into a calendar or legal advice.
Technical definition
CFPB’s key-terms heading for right of rescission is PRIMARY. It distinguishes purchase closings from refinance transactions. Regulation Z is supporting context. Day counts are omitted as individualized legal detail.
Why it matters
Refinance shoppers hear they can cancel. Purchase buyers often think the same rule applies. The official heading draws that line.
Related terms
Related mortgage FAQ
Related mortgage FAQ: What is the right of rescission on a refinance or second mortgage?
Sources reviewed
12 CFR Part 1026
Source reviewedSeptember 6, 2026
Mortgage key terms
Source reviewedSeptember 4, 2026
Important note
Do not turn the statutory cooling-off period into individualized legal advice.
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