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Right of rescission: what it means

The right of rescission lets you cancel certain loans that use your home as collateral, such as a refinance or a home equity loan, after you sign. According to the CFPB, you have until midnight of the third business day (Saturdays count), and that clock starts once three things happen: you sign the promissory note, you receive the Truth in Lending disclosure (usually the Closing Disclosure) and you receive two copies of the notice of your right to cancel.

In Spanish it is

Derecho de rescisión (right of rescission)

Also written as: right to cancel · rescission · three-day right to cancel

The full explanation

You must give notice in writing. It does not apply to a loan to buy or build your principal home.

An example

Patricio signs a cash-out refinance on a Thursday. On Saturday he decides it is not right for him, so he sends the lender a letter canceling it before midnight of the third business day and keeps a copy.

You will see it in…

  • The notice of your right to cancel, given to you in two copies at closing
  • The closing documents for a refinance or a home equity loan
  • The CFPB's pages on changing your mind after closing

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “right of rescission”

More words on this topic: Loans

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Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

  1. 1. CFPB · Can I change my mind after I sign the loan closing documents for my second mortgage or refinance? What is the "right of rescission?" · in English · Verified on October 17, 2026
  2. 2. CFPB · Are there situations where I would not have a right of rescission? · in English · Verified on October 17, 2026
  3. 3. CFPB · Mortgages key terms: right of rescission · in English · Verified on October 17, 2026