One of the most popular trends in the home-equity lending market is about to make a big splash in the primary home-loan arena: mortgages that carry no lender fees, no appraisal charges, no credit report, loan origination, tax service, processing, document preparation, courier or any of the other mind-numbing list of add-ons that hit buyers when they close on their loans.

Big banks have been selling home-equity credit lines this way with booming success for the past two years. Now some are asking: Why not provide the same simplicity to home buyers? Why not make things as easy for people shopping for a first mortgage as when they take out an equity line or second mortgage?

Every consumer-research study says that's what shoppers really want — quick, simplified home loans with no junk fees attached.

First out of the box is Bank of America. Starting this month, it is offering its "Mortgage Rewards" plan, which essentially brings its streamlined, zero-cost equity-line program to people shopping for primary mortgages. Mortgage-industry sources say other large, well-known banks are developing their own versions, so it is worthwhile taking an advance look at Bank of America's prototype.

The key to the plan, the bank's top mortgage officials say, is that it has very few working parts for consumers to puzzle over. The note rate you are quoted incorporates every traditional loan origination and settlement fee but one.

Stripped to its essentials, it is a "zero-cost" mortgage — all fees are rolled into the rate. The only additional cost is title-insurance charges, which can vary widely from state to state and are disclosed when you apply for a loan.

The bank not only will quote applicants the rate and APR (annual percentage rate) mandated by federal truth-in-lending rules, but it plans to urge shoppers to take its quotes and compare them with competitors' rates that come with traditional closing-cost estimates.

"We think we will come out very well on a head-to-head, APR- to-APR comparison basis," said Bank of America mortgage executive Eric Telljohann, who directs the new program.

Unlike competitors in the streamlined home-loan market, such as giant ABN-AMRO Mortgage and General Motors subsidiary Ditech.com, Bank of America's program doesn't quote a fixed-fee "package" of costs along with the interest rate.

There is no "package," because all the fees are paid for in advance by the lender and incorporated in the rate quote and APR disclosure.

The company tried to find a way to fold title-insurance charges into the rate, Telljohann said, but state regulations in many parts of the country made that impossible.

To partially offset the title-insurance expense, the program provides a $200 credit for closing and offers lower-fee title insurance through negotiated arrangements with national title-insurance carriers.

Ernest Smith, the head of Fidelity National Financial's title and mortgage-services division, confirmed his company is aiming to save consumers 40 percent or more on title insurance through participation in streamlined, high-volume programs such as Bank of America's.

Telljohann said the cost-cutting effort touches every line item — so much so that loan applicants can expect to save anywhere from $2,000 (on a 15-year $100,000 mortgage) to $3,986 (on a $400,000 loan.)

Some of the savings will be generated by discount-cost bundling deals Bank of America has negotiated with credit, appraisal and other vendors, Telljohann said.

Still other savings will come from the fact the program is targeted at the 33 million consumers who have checking, savings, credit card or other financial relationships with the Bank of America. That allows the bank to save money in marketing, underwriting, credit-risk evaluation and other traditionally costly upfront activities.

Although competitors haven't seen the program details, at least one welcomed the new entry to the streamlined "bundled services" mortgage market.

"I applaud Bank of America for making this effort" toward simplifying the loan process, said Garth Graham, ABN-AMRO senior vice president in charge of his firm's one-fee guaranteed-cost program.

Some additional facts about Mortgage Rewards: Initially, it will be available in 19 states (Washington state is not one of them) and Washington, D.C., where Bank of America has retail financial centers.

In the fall, eight northeastern states will be added.

The program comes with an optional borrower-protection plan that makes monthly mortgage payments for six months if the homeowner unexpectedly becomes unemployed.

For information, call the bank at 800-900-9000.

Kenneth R. Harney: kenharney@earthlink.net