At our bank, the consumer does not pay for any fees during the mortgage process. #3 on page 2 I would list the charges for the credit report, property search, appraisal; which I'll say is $300. However, would I put a credit amount of $300 into #1-Our origination charge on page 2 so that the Total Estimated Settlement Charges (A+B) = $0.00? Any help would be greatly appreciated.

you will have to list the homeowners insurance cost. in effect, you will not have a gfe w/ $0.00

Where a "no cost" loan or "partial cost" loan encompasses the loan origination charge and/or some or all third party fees, a credit should be listed in Block 2 of the GFE to offset all fees encompassed in the "no cost" loan resulting in a negative number in Block A to cover the intended third party fees, listed in Blocks 3 -11 as appropriate [RESPA FAQ - GFE Block 2 #1]

Would I check box #2 (You receive a credit of ...) or would I not check any boxes and just put in the credit for $300?

I have been instructed to check box # 2 on block 2 for the costs we are absorbing and providing a "credit" for.

Correct, you will check the second box, in section 2, and give the credit at a "-$0.00" (negative dollar amount).

I had one more question, on page 1 Can your interest rate rise? The loan customer will receive a discounted interest rate (6.00%) if they set-up an autopay feature with their checking account. If the loan customer closes their checking account, the interest rate will go up 1/4%. On the GFE would I check the Yes box and state the max. interest rate (6.25) and that the first change will be unknown? [Reading the New RESPA Rule FAQs - 11/19/09 Page 20, I think this would be considered a conditional preferred rate feature].

That is what you have and you would disclose in accordance with FAQ #7 on page 20.