At least one major lender has a totally no-cost loan on its radar screen.

"We talk about it quite a bit," Bank of America's Floyd Robinson told a gathering of the country's real estate writers meeting in Charlotte over the weekend. "I know it's a revolutionary change, but I truly believe that's where the market's going."

Robinson, who is president of consumer real estate and insurance services at Bank of America, said the myriad of closing costs and fees now attached to home loans only serve to confuse borrowers, and promised that the bank's no-fee loans would have the same annual percentage rates at those with fees so borrowers could readily see there would be no hidden charges.

He also said the big Charlotte-based bank is considering offering to refinance its customers' mortgages without charge. "All they'll have to do is call the servicing department and it's done," he said at the National Association of Real Estate Editor's annual conference.

Bank of America, which began to waive lender fees on most mortgages a year ago, thinks it has enough economies of scale and clout with service providers to offer no-cost loans, an executive with bank said. But even if the bank has to take a loss to originate such a mortgage, he explained, it will be worth it to get customers in the door so it can start building banking relationships with them.

Last May, the bank introduced its Mortgage Rewards program, which re-engineered the lending process and promised to knock about $2,000 off the cost to close a $200,000 loan. The savings is higher or lower, depending on the amount of the mortgage, the location of the property and other borrower choices.

With Mortgage Rewards, Bank of America waives the origination, application, lender closing, appraisal, flood determination, tax service, credit report and courier fees. Borrowers also receive a $200 credit on their closing statements, and a one-year insurance policy that "cancels" up to six principal and interest payments if the borrower loses his or her job involuntarily and wipes out the balance altogether if the event of accidental death.

The program is available on most conventional and jumbo products offered by the bank, covering the purchase of both primary and vacation homes.

"There are no gimmicks," the bank's Eric Telljohann said at the time. "We encourage customers to shop around and compare (our) APRs (annual percentage rates) with that of other lenders."

Earlier this month in Charlotte, Robinson said national banks like Bank of America are the "most driven" of all lenders to give borrowers the best products. "We're not in the mortgage business to collect an origination fee, or only to generate repeat business," he explained. "We want to serve all of our customers' financial needs."

The executive said that by the end of next year, banks will be offering free refinancing, bundling their products to save borrowers time and money and making "truly no-fee mortgages."

"These will be revolutionary changes," he told the journalists. "The needs of American home buyers are driving us to make these changes. They'll be the winners, just as they should be."