Do You Know About Your Right to Cancel a Loan in WA State?
- Kendra Marroquin
- Apr 7
- 2 min read
If you’ve ever refinanced a mortgage or taken out a home equity loan, you might have seen a document called the Notice of Right to Cancel (NRTC).
This form is all about giving borrowers peace of mind, and I’m here to help you understand why it’s important!
What Does the NRTC Do?
The NRTC lets you know that, under federal law, you may have 3 business days to cancel certain loan transactions. This “rescission period” starts the day after signing and ends at midnight on the third business day (excluding Sundays and federal holidays).
The form clearly explains your right to cancel, the rescission dates, and how to notify the lender if you decide to cancel the transaction.
When Does the NRTC Apply?
You’ll see an NRTC form in certain loan types, including:
Refinance loans with a new lender
Home equity loans and lines of credit
Cash-out refinance loans
However, it doesn’t apply to:
Purchase loans (used to buy a home)
Loans with the same lender
Loans for vacation homes or income properties
Do You Need to Notarize the NRTC?
Nope, this form doesn’t require notarization.
What Happens During a Loan Signing?
When I assist with a loan signing, I ensure that:
You receive two copies of the NRTC form to keep.
The rescission dates are double-checked for accuracy.
The signed copy of the NRTC is returned with the loan package.
The Notice of Right to Cancel is there to protect you, the borrower, giving you time to think over your decision. As your notary signing agent, I make sure you understand this critical form and its purpose.
Got questions about loan signings or how the NRTC works? Let’s chat! I’m here to help make the process clear and simple.
GIRL FRIDAY NOTARY SERVICES
Notarization may be boring, but I’m not!
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