How you receive cash-out funds

When you refinance your primary home and take cash out, federal law gives you a right to cancel, called the right of rescission. It lasts until midnight of the third business day after you sign. Your loan can't fund until that period ends.

Once it funds, the settlement agent pays off your old mortgage and sends out the rest of the money. Refinances on second homes and investment properties usually don't have a rescission period, so they may fund sooner.

For rescission, business days generally include Saturdays but not Sundays or federal holidays. The clock starts after the latest of three events: you sign, you receive your Truth in Lending disclosure, and you receive two copies of your notice of the right to cancel. Your settlement agent can tell you the exact funding date.

• Wire transfer to your bank account, often the fastest option
• A check from the settlement agent
• Direct payoffs to creditors, sent straight from your loan proceeds

If you're using your cash to pay off credit cards, car loans or other debts, the settlement agent can pay those creditors directly. Each payoff shows on your Closing Disclosure. Watch the accounts until each payoff posts, and keep making any payments due before then so nothing goes late.

Your cash to you is the new loan amount minus your old mortgage payoff, any debts paid at closing and any costs you're responsible for. With CapCenter's ZERO Closing Costs, CapCenter pays for or waives the closing costs typically required to process the loan (restrictions apply). You still fund prepaid interest and your escrow account. You'll see your final number on your Closing Disclosure, which you receive at least three business days before closing.

Fraudsters sometimes target closings. Treat any email that asks you to change wiring or payout details as suspicious, and don't use a phone number or link from that email. Confirm your bank details only through contacts you already trust, such as CapCenter Client Relations at 1-800-968-5844.