New FHA Hybrid Loan - Refinance with NO FEES?My sister is in the process of refinancing, the offer they have received from Peoples Bank in Alabama has this claim for an FHA Hybrid Loan:- no fees- no appraisals- roll over current balance/no cash out- begins with a very low rate that will only go lower on the 4th year and begin to climb 1% around 5th or 6th year but with a cap that will protect them...- when I asked how Peoples Bank would benefit in all this, she said they were told the govt is doing this for people due to the economy and it is completely at no cost to her and her husband. The bank receives their incentive from FHA and it is backed by the US Treasury; banks are paid by the govt to offer these loans to stop the current foreclosure frenzy. She sent me a copy of the offer with all of the bells and whistles printed all over it. I'm not sure if I can attach, BUT, if this is true why wouldn't all of us be better off refinancing with this "new" - no cost to me, offer from our friendly US Govt. She was told that even with the worst case scenario where interest rates are concerned her payments will never go above what she is paying now.Is this real?September 23 2011 - Phenix City00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.