True or False: 1. PMI insures your lender in case you default on your loan-- it doesn't insure you, the borrower, for anything. True False 2. For loans made after July 29, 1999, the new PMI Act requires a lender to cancel your PMI automatically once you've paid off 10 percent of your property's original value. True False 3. Ways to figure out your home's current value include: obtain an appraisal, study what homes have sold in your neighborhood on the Internet, or read the local real estate ads. True False 4. If you got your loan before July 29, 1999, you can request to have your PMI canceled. True False 5. You can request to cancel your PMI when your home equity reaches 20 percent or you've paid off 20 percent of the loan balance. True False 6. Even if you haven't paid off 20 percent of your home's original value, you might qualify to cancel if your home has appreciated in value since you bought it. True False 7. Homeowners with a history of late payments still qualify to have their PMI cancelled automatically. True False 8. You can reach 20 percent faster by market appreciation, improving your home, or paying off your loan principal faster. True False9. If you have a home equity loan, and the loan balance in addition to your mortgage loan exceeds 80 percent of your home's value, you do NOT have enough to cancel PMI. True False10. A request to cancel PMI can be made verbally over the phone. True False
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