The "lender paid" mortgage insurance will have a higher rate but I find it still works out to lower monthly's than a loan where you pay the mortgage insurance.
As of 3/13/2008 I saw rates close to 6.5% or 6.75% with the lender paid mortgage insurance.
Here is a blog that discusses all the variable that affect rate and monthly payments.
I just locked a borrower in with a similar scenario. We broke to loan into two to eliminate the Mortgage insurance.
6% on the first
6.5% on the second