The Rescission Period for Loan Documents

When a loan includes a rescission option, also known as the "Notice of Right to Cancel", the borrower has 3 business days from the signing date to cancel under the Truth in Lending Act (TILA). This rescission period does not apply to all mortgage loans. For any exceptions or lender-specific policies, always verify with the lender.
Loans That Include a "Notice of Right to Cancel"
  • Refinances of a primary residence
  • Home equity loans (HELOANs) on a primary residence
  • Home equity lines of credit (HELOCs) on a primary residence
  • Reverse mortgages on a primary residence
Loans That Do NOT Include a "Notice of Right to Cancel"
  • Purchase loans (buying a home)
  • Refinances on investment properties or vacation homes
  • Commercial or business loans
  • Cash-out refinances on non-primary residences
  • Construction loans
How to Calculate the Rescission Date
The rescission period ends at midnight on the third business day after:
  1. The loan signing date.
  2. The borrower's receipt of the Truth in Lending Disclosure.
  3. The borrower's receipt of the "Notice of Right to Cancel."
Rescission Period Considerations
  • Saturday may not always be considered a business day, as some lenders have different policies. If unsure, contact the lender directly.
  • If a signing occurs on a federal legal holiday, the rescission period begins on the next business day.
  • The rescission period ends at midnight on the third business day. Borrowers must cancel before midnight of that date.
Calendar Color Code
  • Blue: Sunday (Not counted as a rescission day)
  • Red: Federal Legal Holiday
  • Yellow: Federal Employee Observed Holiday (If a legal holiday falls on a weekend)
Calendar
Business days include any day of the week except Sunday and the following federal legal holidays:

New Year's Day
Martin Luther King Day
Presidents Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day
This calendar is a reference tool provided by the Notary Learning Center for Loan Document Signers. While we strive for accuracy, we are not responsible for any errors.