A right of rescission, also known as a right to cancel, is designed to give a borrower a “cooling off period” that provides time (usually three days) to cancel the loan after it has been accepted by the borrower.\u00a0<\/b><\/p>

As an extension of the Truth in Lending Act, this right helps protect borrowers against unfair and unethical lending practices by giving them the right to cancel the loan within the rescission period.<\/b><\/p>

In addition to the right to rescind option, this right allows you to apply for a refinance or home equity loan with a new lender.\u00a0<\/b><\/p>

If you find out that the loan provided by your current lender has higher fees or interest rates, you can cancel the loan with the current lender and apply with another lender that can provide better terms for the loan.<\/b><\/p>

According to the CFPB<\/u><\/a>, the three-day rescission period begins on the first business day after signing a loan agreement and all the closing disclosures are submitted. The rescission period is for 3 business days including Saturdays and excludes Sundays and national and public holidays.<\/b><\/p>

For Example, if you have signed the final documents for a mortgage refinance on Friday, you would have until Tuesday midnight to exercise your right to rescind.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t