Which PMI Option is Best? Lender or Borrower paid PMI? In most cases, if a borrower is applying for a conventional loan that exceeds 80% of the appraised value, the lender will require some form of Private Mortgage Insurance or PMI. Generally, you will have the option of selecting either borrower paid mortgage insurance (BPMI) or lender paid mortgage insurance (LPMI). The borrower paid mortgage insurance option can usually be paid monthly or as a one-time lump sum at closing. view all