The grace period refers to the amount of time a borrower can be late for payment without being penalized with extra charges.
Different lenders can have varying standards and procedures regarding the payment grace period.
However, it generally lies between 10 to 50 days.
On the flip side, grace periods can also refer to the number of days after a borrower has signed up for a credit facility to cancel it without incurring any penalty fees.
For example, if a borrower has signed up for a line of credit that will be activated in 10 days, it might be that should he withdraw the facility within 3 days, the credit line will be cancelled without penalty fees.
While grace period are less common with term loans whereby a lump sum of funds was disbursed, they are also not unheard of.
But in practice, as long as a borrower has yet to have a facility activated, as long as he argues hard enough, he should be able to be released be the lender with no string attached.
It could also be a banker who is more unwilling to let you go instead of the lender due to his potential loss of commissions.
With that said, it might be difficult to get fee reversals should certain closing cost items have already been paid.