My MIL is pushing it...

My MIL is very excited for her first grand baby, just like my mother. I love them to death and so grateful for all the help and advise that I’ve been receiving from both side. We live 3hrs from ‘home’ where both our parents live because I am working on my masters and my fiancé is a diesel mechanic who was in need of a city to pay for his services versus our fun down-little-farm town. Anyway, anytime we are around my MIL she always says to my fiancé ‘just so you know I don’t share with others’ (referring to sharing my baby with my family) and strongly placing her beliefs on my child without even any consideration. Now, personally I believe that she’s going to far with it all. My mother offered to move closer to us to help out since I’ll be giving birth half way through my school year, an important year for me. My MIL is full of hate for the idea that she won’t be the one over at our house with the baby when need be. I’m not assuming, she’s said this. I makes me so upset and I have no idea what or how to tell her that she needs to tone it down a little. I don’t want to start things and I spoke with my fiancé and he totally agrees. How do I handle this? Am I over reacting?