It's real good to be heavily in debt when inflation increases beyond expectations.
There were many government employees in Brazil who'd bought real estate in BrasÃlia (the country's new-ish capital) with significant mortgages at reasonable fixed or quasi-fixed interest rates before the inflationary 1980's. After many years of 100% or 600% inflation in the 1980's, were left paying the equivalent of US$50 per month mortgage for awesome apartments.
My mortgages are all using a fixed repayment plan, where the interest rate, payments, and repayment duration are fixed on day one. If the inflation rate doubled or halved next year, my loan terms won't change and I'd end up repaying less or more money, relatively.
For fixed mortgage rates, the inflation over the period of the note is guessed at. The reason fixed mortgages charge more interest than adjustable ones is to take into account the risk of inflation increasing.
Many other loan rate, such as margin interest, are "prime rate plus X". The prime rate is inflation plus a constant.
Again, the people loaning out the money are not fools about inflation.
There were many government employees in Brazil who'd bought real estate in BrasÃlia (the country's new-ish capital) with significant mortgages at reasonable fixed or quasi-fixed interest rates before the inflationary 1980's. After many years of 100% or 600% inflation in the 1980's, were left paying the equivalent of US$50 per month mortgage for awesome apartments.