davidwr's Journal: The inflation-adjusted morgtage payment

Problem:
Adjustable rate mortgages rise too fast.

Solution:
Mortgages whose payments go up with inflation, and down with deflation. The term of the loan shrinks or expands as needed, with a balloon payment of the remaining balance after some fixed period of time, say, 10 years past the stated term of the mortgage.

Twist:
Have the interest rate adjust with inflation as well, rather than the prime lending rate.