What is Loan Rescission?

What is loan rescission?

1 Answer

Loan Rescission is the term used in connection with refinancing your primary residence.  It is the time frame after you have closed on your loan in which you can cancel your loan request with the lender. 

It is the three business day period after the day of closing and you are provided a form in your closing documents in which you can sign and send back to the lender or the title company and have them forward the form to the lender informing them of your decision to "rescind" on the loan request and cancel the transaction.  If the rescission document is not received by the lender within the three day period following the closing, the loan is in force and implies your acceptance of the transaction. 

I would encourage you to review the documents carefully at closing to ensure accuracy and make sure all fees and charges match up to what you have been quoted throughout your loan process.  I hope this information helps.