You can CANCEL a Home Equity Loan via the Truth
In Lending Act.  You have a Three Day Window to
cancel your Home Equity Loan!

Truth-in-Lending-Act Definition
Also known as the Consumer Protection Act, legislation enacted
 in 1968 requiring money lenders to be explicit about the true
 costs of credit transactions. 
 
 The Truth in Lending Act required lenders to disclose the terms
 and costs of their home equity plans, including the annual
 percentage rate, points, and fees.  In general, neither the lender nor
 anyone else may charge a fee until you have received this
 information.  Lenders who advertise must meet Truth in Lending Act
 disclosure requirements with respect to loan rate and terms.  The
 main point of interest to the borrower is that the Truth in Lending
 Act provides them with the right to cancel certain real
 estate lending transactions within three days. 

You Have 3 Days to Cancel
When you open a home equity loan, the transaction puts your
home at risk because if you default on the loan, the lender could
foreclose on it.  For your principal residence, the "Truth in Lending
Act" gives you three days from the day the account  was opened
to cancel the credit line.  This right allows you, the homeowner,
to change your mind for any reason.  Maybe you found better terms
or simply got cold feet.  Whatever the reason you have the right to
cancel the home equity loan. 


How To Cancel Home Equity Loan
If you do decide to exercise your right of rescission, you must
inform the creditor in writing within that three day period.  The
creditor must then cancel the security interest in your home and
return all fees paid to open the account.  Be sure your notice is
delivered before midnight of the third business day. 

For rescission purposes, business days include Saturdays but
not Sundays or legal public holidays.





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