Why the Right Rescission Date on Your Loan Documents Matters

When you’re signing loan documents for a refinance, you may notice a form called the Notice of Right to Cancel. This document is one of the most important protections you have as a borrower — it gives you the legal right to change your mind and cancel the loan within a specific time frame.

But here’s the catch: the rescission date (the final day you can cancel) must be correct. Having the wrong date on your Notice of Right to Cancel could cause confusion, delay your loan, or even affect your legal rights.

What Is the Right to Cancel?

If you’re refinancing your primary residence, federal law gives you three business days to cancel the loan after signing. This is called the rescission period. During this time, you can:

• Take another look at your loan terms.

• Compare it with other offers.

• Decide if you’re comfortable moving forward.

You don’t need to give a reason to cancel — the choice is entirely yours.

Why the Date Matters

Your rescission period ends at midnight on the third business day after signing. That final day is your rescission date, and it must be clearly printed on your Notice of Right to Cancel.

Here’s why the correct date is critical:

• ✅ Protects your rights – You know exactly how long you have to change your mind.

• ✅ Prevents delays – An incorrect date could hold up your loan funding.

• ✅ Avoids confusion – You and the lender are on the same page about your deadline.

Think of it like a return policy at a store — if the return date is wrong on your receipt, it could cause unnecessary headaches.

What to Do as a Borrower

When you’re signing your loan documents, take a moment to check the rescission date on your Notice of Right to Cancel. Here are a few quick tips:

1. Verify the date – Make sure it matches the third business day after signing. (Sundays and federal holidays don’t count.)

2. Ask questions – If the date looks off, don’t hesitate to speak up. The lender or notary can correct it right away.

3. Keep your copy – Hold on to your Notice of Right to Cancel so you have proof of your deadline.

Final Thoughts

Your Notice of Right to Cancel is one of the strongest consumer protections in mortgage lending. But it only works if the rescission date is correct. By double-checking this detail during your signing, you’ll protect your rights, avoid delays, and have peace of mind knowing you’re fully in control of your loan decision.