Please help me understand this.
If someone has a $50,000 house loan with us and there is a balloon payment and they refinance the $50,000 plus interest - does right of rescission apply?
OR, if they refinance the $50,000 plus $10,000 for improvements etc. does ROR apply only to the $10,000? If so how is the money dispersed? Do you disperse all of it after the four days or just the $10,000 and the $50,000 dispersed right away. Is the $10,000 what is considered "new money"?

1) no.
2) basic answer, yes. As to disbursement...I would venture to say the $50K would go out to pay off the old debt and the 10k would be up to the loanofficer. If they are handling it as a draw vs giving it all out. And yes, the $10K is the new money. (assuming you hold the original loan being refinanced!)