Right of rescission applies when the amount financed exceeds which of the following?

The right of rescission under Regulation Z is a consumer protection measure that allows borrowers to cancel certain types of loans, particularly those secured by their home, within a specified period. This right is particularly applicable in refinancing situations.

The correct choice indicates that the right of rescission applies when the amount financed exceeds all unpaid amounts and refinance-related costs. This encompasses not only the initial loan principal and any outstanding finance charges but also any additional costs associated with refinancing, such as fees for processing the loan or other closing costs involved in the transaction. By including all of these elements, it ensures that consumers are protected from financial burdens that exceed what they initially borrowed, thus allowing them to reconsider their decision to refinance if they are taking on more debt overall.

The other choices do not capture the full scope of the right of rescission in this context since they limit the components that would trigger the rescission. For instance, simply focusing on unpaid principal balance or unpaid finance charges does not account for additional costs that play a critical role in the overall financial picture of the transaction. Therefore, understanding the complete range of what constitutes "the amount financed" is essential for recognizing when the right of rescission activates.