买新房子 downpayment 问题

向大家请教一个买房子初级问题：

我们想买一个稍大一点的房子， but we don't have enough cash for 20% down payment. We have some equity in our current house. We plan to rent out our current house after we move to the new house. I also checked with a mortgage broker and was told that we are qualified to apply for mortgage loan for the full amount of the new house.

Which of the following options makes more sense:

1. Apply for Home Equity Loan from the current house and use the money to make up for 20% down payment.

2. Apply for a large mortgage loan with only 5 to 10% down pay and pay Mortgage Insurance on the new loan.

3. Any other options?

Thank you so much for your input!