Right of Rescission - With any loan that is a refinance the borrower has a 3 day right of rescission. This is a period of time after the loan closes where the borrower may change their mind and cancel the loan. A cancellation form is included in your settlement papers. In order to cancel the loan you must sign this document in the correct place (there is a signature line to cancel and a signature line indicating that you received a copy of the form) and return it to the title company, the mortgage broker and/or the lender. If you plan to rescind the loan you should contact your mortgage broker as soon as possible. The 3 day period of time does not include Sundays or national holidays. For example if you close the loan on Monday, your 3 day right of rescission starts at 12:00AM Tuesday (midnight the day of closing) and lasts till 12:00 AM Friday (midnight 3 days after closing) and your loan will fund or disburse on Friday. Once again this is only on a refinance. New Purchase loans do not have this rescission period and fund immediately.
There are different types of 100% loans. You can
either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage
professional to see which program is best for you!
