Quick answer
The right of rescission is your federal right under the Truth in Lending Act to cancel certain loans secured by your principal home — most refinances, home equity loans and HELOCs — within 3 business days after closing, without penalty. It doesn’t apply to a loan used to buy the home.
Key facts
20days
Lender must refund and release the lien within
CFPB; 12 CFR 1026.15(d)(2) and 1026.23(d)(2) · Oct 28, 2026
3years
Right lasts up to this long if disclosures were missing
12 CFR 1026.15(a)(3) and 1026.23(a)(3) · Oct 28, 2026
Counting the days
The clock starts only after the last of three events: you sign, you receive the Truth in Lending disclosures, and you receive two copies of the rescission notice. Saturdays count as business days; Sundays and federal holidays don’t. Sign on a Friday with no holiday in between and your deadline is midnight on Tuesday. The lender won’t release the money until the period has passed. If the required notice or disclosures were never given, the right can last up to 3 years.
How to cancel, and when you can’t
Notify the lender in writing — a phone call doesn’t count — and keep a copy. The lender then has 20 days to return any fees and cancel its lien. There is no right of rescission on a purchase loan, on a second home or rental, or on a refinance with your current lender except for any new money borrowed. It does cover a cash-out refinance, a home equity loan and a HELOC on your main home. The refinance closing costs guide shows where it fits in the timeline.
Sources
- CFPB — Right to cancel a refinance or home equity loan on your principal home; After you cancel, the lender must return your money and release the lien within (Aug 8, 2024)
- 12 CFR 1026.15(a)(3) and 1026.23(a)(3) — Right to cancel lasts up to this long if the required notice or disclosures were not given (Oct 28, 2026)
- CFPB: How long do I have to rescind?
- 12 CFR 1026.23: Right of rescission
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.