Mortgage applications increased in the past week

The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending October 28 found mortgage applications increased 0.2 percent from the previous week.

The survey found the refinance index decreased 0.2 percent from the previous week, while the purchase index increased 1.8 percent. The refinance portion of the mortgage activity for the week decreased to 77.1 percent compared with 77.3 percent the week before.

While mortgage applications increased slightly, many borrowers are struggling to meet a 20 percent down[space]payment to acquire a home loan. Forbes recently identified different ways consumers can buy a home without the 20 percent down payment.

The source reported that insuring a mortgage can reduce the down payment to well below 20 percent. The current Federal Housing Administration loan program only requires homeowners to put down 3.5 percent if their loan is insured.

In addition, homeowners could opt for piggy-back loans, in which the borrowers take out two loans on a home. One of the loans could cover 80 percent of the home value, while the other accounts for the remaining 20 percent. In this scenario, borrowers would not need to purchase mortgage insurance still put down less than 20 percent on the home.

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