The right to rescind
When a credit plan is secured by your principal dwelling, each owner whose interest is subject to the security has a right to rescind. It covers the plan when it opens, each credit extension, a security interest added or increased, and an increase in the credit limit.
Try your own figures in the HELOC calculator →
How long you have
You may rescind until midnight of the third business day following the opening, the delivery of the rescission notice or the delivery of all material disclosures, whichever comes last. If the notice and disclosures are never delivered, the right lasts up to 3 years, or until you transfer your interest or sell.
A refund if terms change before opening
The plan's disclosures must state that if a disclosed term changes before the plan opens, other than through movement in the index on a variable-rate plan, and you decide not to open it, you may get back all fees paid with the application.
When the line can be frozen
A creditor may prohibit additional draws or reduce the limit in listed cases, including when the home's value declines significantly below the appraised value used for the plan. The official commentary treats a drop as significant at least when the gap between the credit limit and the available equity shrinks by fifty percent.
Which forms you receive
A HELOC does not come with a Loan Estimate or Closing Disclosure. The disclosures and a brochure about home equity plans have to be provided when you get the application.
What the calculator adds
It cannot read your plan. It does let you test what happens if the limit is cut: lower the CLTV and compare the line.