What loan type has a three business-day rescission period?

The correct answer pertains to the owner-occupied refinance loan type, which is subject to a three business-day rescission period. This period allows borrowers to reconsider and potentially cancel the loan agreement without penalty after signing the closing documents. It is important to safeguard consumers, giving them time to rethink the terms of the loan, ensuring they truly want to move forward with the refinance.

Other loan categories, such as vacant land, commercial loans, and non-owner occupied residential loans, do not have the same three-day rescission period. These types of loans do not typically involve the same consumer protection measures, primarily because they don't fall under the same regulations aimed at protecting homeowners or consumers in residential lending. Thus, the owner-occupied refinance loan type stands out due to this critical feature.