Final answer:
The basic consumer rationale behind an interest-only loan is that it allows borrowers to have lower monthly payments in the short term.
Step-by-step explanation:
The basic consumer rationale behind an interest-only loan is that it allows borrowers to have lower monthly payments in the short term. With an interest-only loan, the borrower only pays the interest on the loan for a certain period of time, typically a few years, before beginning to pay off the principal. This can be advantageous for consumers who expect their income to increase in the future or who are planning to sell the property before the principal payments kick in. However, it is important to note that interest-only loans can be riskier as borrowers may end up owing more in the long run and may be subject to rising interest rates.