Yes, you can. The majority of reverse mortgage loans come with a three-day period during which you can exercise “the right of rescission” and change your mind about taking out a loan, even if it’s signed. You can cancel the loan during that period without penalty fees. To cancel a reverse mortgage plan, all you have to do is alert the lender in writing within three days from signing.
The lender is then required by law to cancel all loan documents and return all fees, closing costs, and unused funds paid by the consumer within 20 days.
This doesn’t happen often. Because reverse mortgages are government-insured and regulated, every borrower attends a mandatory counseling session in which the lenders present all the facts, costs, pros, and cons.
This commitment to informing borrowers means that very few change their minds. Still, the most notable reverse mortgage companies all include the three-day window as a safeguard that gives borrowers time to think about their decision.