The three-day right of rescission applies to which loan type?

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

The three-day right of rescission protects a borrower when a loan is secured by the borrower's principal dwelling and is a refinance of that dwelling. It gives the borrower three days after closing to cancel the loan if it finances the mortgage on their primary residence. That’s why the correct choice is the refinance loan of the borrower's primary residence. It does not apply to loans on rental (investment) properties, nor to loans used to purchase a home, nor to all loans including purchases.