Is there a tool that I can use where I can type text in and it will turn it into html without me having to add all of the tags as I type text in notepad or word
There is Dreamweaver, but that is not free. Here is a list of free WYSIWYG editors webdesign.about.com/od/htmleditors/tp/aatpfreewyswin.htm
You can use MS word to make a document for a web page. You just need to save the document as a 'web page'. The code isn't pretty but it'll work.
Word can export a document as HTML. I think you just select "save as". It's an awful way to do it though. If you're just bolding and italicising things, you really really should do it by hand
You can export many of the "Google Docs" files into websites. It is free, all you need to do is sign up for a google account. Then create a new document using google docs. When you like it, export it as a website.