Is It Typical for Mortgage Broker to Charge Fee on Refinance?

[Kim Hopkins]

Hello!

We have a great new mortgage broker but I was just reading his engagement letter and they want us to agree that we will pay them another fee if we REFINANCE with the lender they've introduced us to within 5 years from the effective date of the agreement. 

We specifically went with one of their lenders that doesn't charge a prepayment penalty so we could refinance if rates are lowered in the next 1-2 years. 

With this agreement, we pay them a fee when we close on the loan now.

Then if rates go down and we want to refinance with this lender, we owe them ANOTHER fee (they said it might be half of the full fee but still) on the refinance. 

Is this standard? We like these guys a lot but it doesn't seem like they're contributing any work to the refinance and I'm surprised this is expected. 

Thanks!

Kim