For loans where a consumer's principal dwelling is used as collateral, other than original purchase loans, (i.e. home equity lines of credit and refinances) the borrower has the option to cancel the loan contract within three days of closing. The institution or its designee must be notified in writing of your intention to cancel. The intent is to give a borrower a "cooling off" period within which you can review documents and the impact of this loan. If you wish, you may "rescind" the loan, or decide you do not want it.