Three Day Right of Rescission
When you refinance, you have three business days after closing in which to change your mind and rescind the transaction. This is called the rescission period. Until that time is over, no funds are disbursed, so your old mortgage is not paid off and your new mortgage is not funded. This is a three business day period of time that is required for your protection. So if you feel you have erred, or refinancing isn't for you at this time, you may opt out by signing a letter with the date and cancellation of the transaction. If you do have a change of mind, you must notify the settlement attorney in writing by midnight of the third day.
If you do not recind within the required 3-day timeframe, disbursement of the loan will occur on the following day.
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