Right of Recission

Does a right of recission need to be given if you are only refinancing a loan with no new money, except additonal fees will be financed?

Yes, unless the lender changes. Then rescission applies.

Same lender + same borrower = No, as long as the only money being advance is to cover the closing costs associated with the current transaction.

This may help:

(f) Exempt transactions. The right to rescind does not apply to the following:


(1) A residential mortgage transaction.


(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation.