Sierra Borrows $175,000 from Regional Home Finance Corporation to Buy

Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1 ARM, with an initial interest rate of 3.0 percent for three years and potential annual increases of up to 3.0 percent to a cap of 11.0 percent. Ten days before the loan is finalized, the lender discloses the amount of the loan principal, the initial interest rate, the initial annual percentage rate, and associated fees and costs. Before the first increase takes effect, Sierra decides that she wants to rescind the loan. What is a twenty-year, 3/1 ARM? Can Sierra rescind this loan? Why or why not?

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