LIBOR and MLSLI past President Don Scanlon, of Century 21 American Homes in Wantagh, recently spoke to News 12 about President Obama’s announcement that the federal housing authority will lower its mortgage insurance premium rates starting this month. Under the new plan, a $350,000 mortgage would help the average new homebuyer save $140 a month.  Existing homeowners will also be able to refinance into a VA or FHA mortgage and see a similar reduction. The White House hopes the reduction gets more buyers into the market.

"The average first-time buyer doesn't have 20 percent to put down, so they're going to be paying a mortgage insurance premium,” said Scanlon. “If you reduce that mortgage insurance premium, you're making the home more affordable or increasing the ability of the buyer to buy an even more expensive home."  Watch the full video here.

Source: News 12