what is the cooling off rule 
the cooling off rule is an ftc rule that applies to certain types of purchases but not to real estate vehicles or many other things in applicable situations sellers are required to explain your right to cancel and to provide you with forms for that purpose as with the right of rescission the cooling off period is three days 7the bottom linethe right of rescission allows consumers a brief period of time to cancel certain types of home loans if they change their mind if you are planning to sign a loan contract and have any doubts about whether you will want to proceed with the arrangement it s a good idea to find out beforehand whether the right of rescission applies 