They change the programs all the time but everywhere has to make money somewhere. The Truth in Lending Act requires that they give you all the info up front so that you can make an informed decision. Ask for the fees, interest rate, etc in writing and read it carefully. Many similar programs have fine print that says the fees are added to the principle amount. Don't be afraid to ask the direct questions of the loan officer. If they are making the interest over the life of the loan, they can afford to make it free up front, but as you said, check the interest rate too. As a realtor, the only problem we have with banks providing the loan is that they are usually salaried and not as motivated to close the loan quickly. You frequently don't have a designated person. With a commissioned loan officer, they are motivated to get everything done quickly and usually close on time. Hope this helps!
Diane Conaway, RE/MAX United, (760) 749-2888