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What is a recission period?
When you refinance your home you will typically have a three day right of recission. This gives you time to review all of the documents you have signed, and to make sure you understand all terms of the contract. If you are paying off any debt, or getting cash back from the refinance of your home, you will not receive any of the funds until after the recission period.
If you are refinancing a home that is non-owner occupied, a rental or investment property, there is not recission period on these types of refinances. These loans will usually fund the same day that they close.
If you are purchasing a home, there is not a recission period. Once you sign the loan documents, you own the home.
When you refinace your home you have a three day recession period.
If you choose to cancel a loan, or rescind you will typically have to notify your mortgage broker, the lender who the loan was actually through, and the title company in writing. If you fail to notify all parties you may not be able to cancel the contract.
In the state of California this is the only loan that provides for a recession period as there is what’s called a no "cooling off period" in California.
Not every state carries a recission period. Your loan officer or broker will give you the timeline for signing, recording and funding of your loan.
» DISCLAIMER: The information contained in this article on 'What is a recission period?' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.
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