Conventional PMI structure where the borrower pays a visible mortgage-insurance charge.
Borrower-paid mortgage insurance, often shortened to BPMI, is a conventional PMI structure where the borrower pays a visible mortgage-insurance charge.
Borrower-paid mortgage insurance matters because it makes mortgage insurance cost easier to see in the monthly payment. The borrower can usually identify the separate PMI line instead of having the cost embedded into rate or pricing.
It also matters because borrower-paid conventional PMI may have a clearer cancellation path than some pricing structures that do not show the same separate monthly PMI charge.
Borrowers encounter BPMI when comparing conventional loan estimates with smaller down payments or higher loan-to-value ratios.
The term becomes practical when comparing a visible monthly PMI charge against Lender-Paid Mortgage Insurance (LPMI) or a larger down payment.
| Mortgage-insurance path | What the borrower usually sees |
|---|---|
| Borrower-paid mortgage insurance | A visible borrower-paid PMI charge |
| Monthly Mortgage Insurance | Recurring MI charge in the payment |
| Split-Premium Mortgage Insurance | Upfront MI component plus a recurring charge |
| Lender-Paid Mortgage Insurance (LPMI) | Cost recovered through rate or pricing rather than the same visible monthly PMI line |
| Mortgage Insurance Premium (MIP) | FHA mortgage-insurance structure |
| PMI Cancellation | Later removal process for eligible borrower-paid conventional PMI |
A buyer chooses a conventional loan with a smaller down payment. The payment includes a separate monthly PMI charge. That structure is borrower-paid mortgage insurance.
Borrower-paid mortgage insurance differs from Private Mortgage Insurance (PMI) because PMI is the broader conventional mortgage-insurance label, while BPMI identifies the borrower-paid structure.
It differs from Lender-Paid Mortgage Insurance (LPMI) because LPMI usually shifts the cost into rate or pricing instead of the same separate borrower-paid line.
It also differs from Mortgage Insurance Premium (MIP) because MIP belongs to FHA loans, while BPMI is a conventional mortgage-insurance structure.