Dictionary
Thesaurus
Encyclopedia
Translator
Web

cooling-off rule

 - 1 dictionary result
Financial Dictionary

Cooling-off Rule

A term referring to law pertaining to newly-entered contracts that allows both sides of the party a period of time (after the contract has been signed) to release themselves from any obligations without penalty.

Investopedia Commentary

Different types of transactions will have different cooling-off rules, and not all types of contracts have such provisions. Typically this period will be three days however, it is imperative that all the rules and regulations listed in the fine print are read before entry into a contract.

In the U.S., federal law usually requires a three-day penalty-free period for the rescission/withdrawal from any refinancing contract associated with the primary residence.

See also: Adjustable Rate Mortgage, Conventional Mortgage, Mortgage

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Search another word or see cooling-off rule on Thesaurus | Reference
FacebookTwitterFollow us: