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Are there situations where I would not have a right of rescission?

The right of rescission does not apply in every case where your home is used as collateral for the loan. For example, you do not have the right of rescission when:

  • Your loan is used to purchase or build your principal home
  • You consolidate or refinance with the same creditor a loan that is already secured by your home, and no additional funds are borrowed
  • A state agency is the creditor for the loan
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