President Barack Obama announced a new plan Thursday aimed at helping homebuyers.

The president announced that the federal housing authority will lower its mortgage insurance premium rates starting this month. Obama says it will save the average new borrower more than $900 each year.

The White House hopes the reduction gets more buyers into the market.

Wantagh-based real estate broker Donald Scanlon says under the new plan, a $350,000 mortgage would help the average new homebuyer save $140 a month.

Under the plan, existing homeowners will also be able to refinance into a VA or FHA mortgage and see a similar reduction.

"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."