Right Of Rescission The right to rescind (cancel) a real estate loan applies to most consumer credit loans (hard money loans) or refinance loans. Loans used for the purchase or construction of the borrower`s personal residence (purchase money loans) have no right of rescission, The loan funds the next business after their loan documents are signed and verifed by a notary public and escrow. The lender MUST provide written rescission disclosure to every borrower who is entitled to rescind. When the right of rescission applies, the borrower has a right to rescind the agreement until midnight of the third business day after the promissiory note is signed. If the third business falls on a weekend or a holiday then the loan will fund on the following business day. Have you ever had a customer cancel a loan during the rescission period? If so why did they? I once had a customer cancel a refinance that she had signed for on the last day of rescission. She thought her rate was too high i was giving her a 4.99% on a 5/1 ARM with no prepay and $90,000.00 in cash out as she had requested this was during the 2002 refi-boom , aka the good old days............... She ended up redoing the loan with me the following month. Apparently her reason for Canceling was due to some misinformation she had recieved from her brother in law who was a "broker". He tried to charge her $7500.00 in origination alone. Have you ever had a customer cancel a loan during the rescission period? If so why did they?