Under Texas law, what is the required cooling-off period for home equity loans?

In Texas, the required cooling-off period for home equity loans is established at 12 days. This period is designed to provide borrowers with sufficient time to reconsider their decision and ensure they fully understand the terms and implications of the loan. During this time, borrowers can reflect on their financial situation and explore any concerns they may have regarding the loan agreement.

This precautionary measure supports consumer protection by allowing individuals to avoid making hasty financial decisions that could impact their long-term financial stability. The 12-day period serves as a mandatory waiting time after the loan documents have been signed and before the loan proceeds can be disbursed, which emphasizes the importance Texas places on ensuring borrowers have adequate time to evaluate the commitment they are making.