Final answer:
A rate lock is a contractual agreement between a borrower and a lender that ensures a specific interest rate is secured for a certain period of time. The longer the length of the rate lock, the more favorable the interest rate will be for the mortgage broker.
Step-by-step explanation:
A rate lock is a contractual agreement between a borrower and a lender that ensures a specific interest rate is secured for a certain period of time. The longer the length of the rate lock, the more favorable the interest rate will be for the mortgage broker. This means that if a mortgage broker locks in an interest rate for a longer period, they have the benefit of a lower interest rate for that duration, providing them with more favorable financing terms.