Right to Rescind

Refinance Rescission Notice

The Refinance Rescission Notice, a crucial aspect of mortgage refinancing, offers a three-business-day window for borrowers to cancel their new loan agreement without penalties. This right, provided under the Truth in Lending Act (TILA), is a vital consumer protection tool. It begins from the later of the loan closing date, receipt of the rescission notice, or receipt of all required Truth in Lending disclosures.

Understanding Your Right to Rescind

• Time Frame: The rescission period lasts three business days, including Saturdays but excluding Sundays and public holidays.
• Notification: To rescind, borrowers must inform the lender in writing within this period.
• Refunds: Upon rescission, all fees and charges are to be refunded by the lender.
• Impact: Rescinding the loan voids any security interest in the property.

This right ensures borrowers have ample time to review and reconsider their refinancing decisions, safeguarding their interests.