No, a right of rescission does not apply to a refinancing by the original creditor for a closed-end loan already secured by the borrower’s principal dwelling — provided that no new money is advanced.

However, if new money is advanced, the right of rescission applies to any amount exceeding the original loan’s unpaid principal balance, any unpaid finance charges on the existing debt, and any amount solely related to the costs of refinancing (such as attorney’s fees, title examination fees, and insurance fees).

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.23(f)(2) (“The right to rescind does not apply to. . . . 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.”)

• Regulation Z, Official Interpretations, 12 CFR 1026, Paragraph 23(f)(2), Comment 4 (“If the refinancing involves a new advance of money, the amount of the new advance is rescindable. . . . For purposes of the right of rescission, a new advance does not include amounts attributed solely to the costs of the refinancing. These amounts would include § 1026.4(c)(7) charges (such as attorneys fees and title examination and insurance fees, if bona fide and reasonable in amount), as well as insurance premiums and other charges that are not finance charges. (Finance charges on the new transaction — points, for example — would not be considered in determining whether there is a new advance of money in a refinancing since finance charges are not part of the amount financed.)”)