I am refinancing my home in Massachusetts to pull out cash because mortgage rates are so low. How come I don’t get a check at the closing?
The short answer is that there will not be any “cash-out” refinance money available until a few days after your signing. Let me explain…
When you are refinancing your home – your primary residence – you have three days after signing the mortgage, the note, and all of your lender’s closing documents to think about whether or not you really want to go through with it. This three-day period, which serves as a consumer protection, is referred to as the Right of Rescission. At your closing, you will receive two copies of your Right to Rescind which tell you how to cancel the transaction during the three-day period, at no additional cost.
The three-day rescission period begins with the first day after you sign your closing documents. For example, if we sign your refinance closing documents on Monday, your rescission period would be Tuesday, Wednesday and Thursday. Provided that you have not cancelled the transaction by midnight on Thursday, the refinance will become final on Friday, which is the day your closing attorney will receive money from your new lender to fund your new loan.
Once your closing attorney receives the money from your new lender, your attorney will record your new mortgage, payoff your old mortgage, and send you a check for any money you were getting back.
Refinancing your home in Massachusetts? Get the legal help you need. For more information, contact J.Blumen & Associates 781-784-2500.