BOA “No Fee’s Mortage Plus” VS Private Lender?

I liked the Bank of America “No Fee’s Plus” mortgage because it had no fees and no PMI. Then, I got a reference from a friend at work for a local private mortgage company and contacted them. The loan officer enlightened me of the fact that I could prepay my PMI no matter which lender I used. This lender has been really nice and helpful, but it sounds like he’s gonna give me about the same rates at BOA lists on their website – I haven’t gotten pre-approved, but my credit score is over 800 and my history is good. I can put down 5%. My lender quoted something around 6.5 w/ no points(but he’s always sure to say that it can change day to day) w/ 5% down or around 7% if I choose to go w/ 0 down. The thing is that will all of the fees and prepaying the PMI, my closing costs are around $ 5300. BOA quotes 6.5% on their site w/ .981 pts, which is about $ 1275 for me w/ no other fees

Is there any reason why I shouldn’t use BOA’s “No Fee Mortgage Plus”? I haven’t contacted BOA, but I might tomorrow
I’m looking at fixed rates and the PMI is prepaid forever as far as I understand it, not just one year.

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