All articles 7 min read

Mortgage Refinancing: Understanding the Right of Rescission

Some loans secured by your home come with a limited opportunity to cancel after signing. That right is specific to the transaction and does not apply to every mortgage. Know which documents explain it, how the timing works, and why a waiver is a serious step. Do not assume a purchase loan and a refinance follow the same rules.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

Can I change my mind after I sign the loan closing documents for my second mortgage or refinance? What is the "right of rescission?"

Yes. For certain types of mortgages, after you sign your mortgage closing documents, you may be able to change your mind.

You have the right to cancel, also known as the right of rescission, for most non-purchase money mortgages. A non-purchase money mortgage is a mortgage that is not used to buy the home. Refinances and home equity loans are examples of non-purchase money mortgages.

This right gives you three business days to cancel a non-purchase money mortgage agreement. In this case, business days include Saturdays, but not Sundays or legal public holidays.

The three-day clock does not start until all three of the following events have happened:

  • You sign the credit contract (usually known as the Promissory Note)
  • You receive the appropriate and accurate Truth in Lending disclosure (in most circumstances, this will be your Closing Disclosure form)
  • You receive two copies of a notice explaining your right to rescind

If you decide you want to rescind a non-purchase money mortgage:

  • You must notify your lender in writing that you are cancelling the loan contract and exercising your right to rescind. You may use the form provided to you by your lender or a letter.
  • You can't rescind just by calling or visiting the lender.
  • Within 20 calendar days after your lender receives your notice of rescission, all money or property you paid as part of the mortgage transaction must be returned to you.

In some cases, if the lender doesn’t give you your Truth-in-Lending disclosure (which in most cases will be a Closing Disclosure) or two copies of the notice of the right to cancel, or if the lender makes certain important mistakes on your Truth-in-Lending disclosure, you may have the right to cancel the loan for up to three years. If you think this may apply to you, you should consult a lawyer right away.

Note: If you applied for your mortgage on or after October 3, 2015, in most cases your Truth-in-Lending disclosure will be the Closing Disclosure.

Tip: Whatever form of written notice you use, make sure it is delivered or mailed before midnight of the third business day after your closing and keep a copy for yourself.

Warning: Your right to rescind doesn't change your obligation to make payments on any of your other loans. If you refinance and then rescind the refinance loan, you will still have to pay the original loan.

Tip: If you have the right to rescind, you can cancel your loan in the three-day window for any reason or no reason at all.

If you have a problem with your mortgage closing process, you should discuss the issue or matter with your lender. If you’re having issues with your mortgage, you can also submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372). We’ll forward your complaint to the company and work to get you a response. You may also wish to get your own attorney to take a look at your issue or matter.

How long do I have to rescind? When does the right of rescission start?

If you are buying a home with a mortgage, you do not have a right to cancel the loan once the closing documents are signed. If you are refinancing a mortgage, you have until midnight of the third business day after the transaction to rescind (cancel) the mortgage contract.

The right of rescission refers to the right of a consumer to cancel certain types of loans.

When does the right of rescission apply in refinancing a mortgage?

If you are refinancing a mortgage, and you want to rescind (cancel) your mortgage contract, the three-day clock does not start until all three of the following events have happened:

  • You sign the credit contract (usually known as the Promissory Note)
  • You receive a Truth in Lending disclosure (in most circumstances, this will be your Closing Disclosure form)
  • You receive two copies of a notice explaining your right to rescind

The first business day after the last of these events counts as day one. For rescission purposes, business days include Saturdays, but not Sundays or legal public holidays. For example, if the last of the above three events occurs on a Friday, and there are no legal public holidays in between, then you have until midnight on the following Tuesday to rescind.

You may use the form provided to you by the lender or write a letter. Whatever form of written notice you use, make sure it is mailed or delivered before midnight of the third business day. Keep a copy and any evidence that it was mailed or delivered on time.

If you did not receive your Truth in Lending disclosure or the notice of your right to rescind, or if they were incorrect, you may be able to rescind your loan up to three years from the date of closing. If you think this situation may apply to you, consult an attorney.

Can I ever waive my right to rescind on my mortgage loan?

Yes. You can waive your right of rescission (your right to cancel your transaction within three business days for your refinance or home equity line of credit).

If you have a "bona fide personal financial emergency.” However, if you waive your right of rescission, you might lose your right to rescind the mortgage transaction (unless there is proof of fraud.).

You must give the lender your own written statement (pre-printed forms are not allowed) describing the emergency and clearly stating that you are waiving your right to rescind. The statement must be dated and signed by you and anyone else who shares in the ownership of the home.

Tip: If you have a problem with your mortgage closing process, you should discuss the issue or matter with your lender.

If you’re having issues with your mortgage, you can also submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372). We’ll forward your complaint to the company and work to get you a response. You may also wish to get your own attorney to take a look at your issue or matter.

My lender or broker never provided me with the notice of a right to rescind for a mortgage loan. What can I do?

If you never received the Truth-in-Lending disclosure or the Notice of Right to Rescind from the lender and you were entitled to receive one, you may still be able to rescind your mortgage loan.

However, you must take action during the first three years after you sign the mortgage contract, or before you sell your home – whichever occurs first. If you think you need to rescind your mortgage loan on this basis, you may want to consult an attorney. Remember, you will have to give back the money that you borrowed if you rescind the loan.

Note: In most cases, if you apply for a mortgage on or after October 3, 2015, you will receive a Closing Disclosure as your final Truth-in-Lending disclosure.

If you have a problem with your mortgage, you can submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372). We’ll forward your complaint to the company and work to get you a response.

Are there situations where I would not have a right of rescission?

The right of rescission does not apply in every case where your home is used as collateral for the loan.

For example, you do not have the right of rescission when:

  • Your loan is used to purchase or build your principal home
  • You consolidate or refinance with the same creditor a loan that is already secured by your home, and no additional funds are borrowed
  • A state agency is the creditor for the loan

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

Back to all articles