Solved “Dear Money” means

By refinancing to a shorter term, you could pay off the loan quicker, decreasing the amount of interest you’re charged over time. Cheap money, on the other hand, is money that can be borrowed with a very low-interest rate or price for borrowing. Cheap money is good for borrowers, but bad for investors, who will see the same low-interest rates on investments like savings accounts, money market funds, CDs, and bonds.

Using our self-serve Loan Portal, you can fill out much of the application online and upload paystubs, bank statements and W2s. You can also complete the application over the phone or in any bank branch. After an appraisal determines the home’s value, underwriters will review – and hopefully approve – the loan before a closing date is set1. This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

Meaning of dear money in English

The concept was thoroughly defined in medieval Europe by Nicolaus Copernicus and known centuries earlier in classical Antiquity, the Middle East and China. For example, if a gold coin and a paper bill are both valued at $100, the public will save the gold to keep for themselves, and use the paper money to buy commodities. Keep your credit card in the forefront of your mind ten days prior to receiving your salary. For most of us, who have credit cards, keep them in your home, preferably in a safer place. Credit cards can create an illusion of wealth all the while eating at your purchasing power, especially when you have to make urgent payments like hospital bills, accidental expenses etc. If you decide to refinance, the steps will probably feel similar to when you originally closed on your home.

Money includes physical cash and bank checking accounts that can be used as a medium for exchange and exchanged immediately. Near money, although highly liquid, will take time to convert to cash. Therefore, the “nearness” of money refers to how much time it will take to convert it into cash. And after an average of 30 to 45 days, your money could be working harder and smarter for you. Here’s to lower monthly mortgage payments, a shorter loan term and/or some cash equity for that dream trip.

Business credit cards

Anther way this idiom can be used is in the case of two legal forms of currency that are recognized to have the same value by a government. If one of these two forms is considered to be higher value by the general public, the “higher” value currency will be hoarded, and only the “lower” value currency will be circulated. dear money means Imagine you are a business, and you have assets stashed in warehouses, machines in the assembly lines, but no raw materials or workers – this renders your stashed assets obsolete. Written by Christine Ibbotson, author, finance writer, national radio host and now on CTV Morning Live and CTV News @6.

Bad money drives out good is used to explain why it is common to find many cheap or poor quality items and few high quality items in circulation, when both exist in the same economic market. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice.

What Is Dear Money?

Furthermore, the money supply is correlated with interest rates, and both are heavily impacted by quantitative easing policies enacted by various countries. If “good” coins have a face value below that of their metallic content, individuals may be motivated to melt them down and sell the metal for its higher intrinsic value, even if such destruction is illegal. The 1965 United States half-dollar coins contained 40% silver, in previous years these coins were 90% silver.

For anyone trying to better their situation by going into debt, remember we should never become complacent about our debt — good or bad. You always want to have a strategy to repay each debt in full during the life of the asset or at least by retirement. In wealth management, near money is useful when optimizing portfolios for individual investors based on their risk tolerance levels.

Understanding Dear Money

Investors with a low ability or low willingness to take risks will allocate a greater proportion of their portfolio to highly liquid assets, such as near money. The principles of Gresham’s law can sometimes be applied to different fields of study. The law was named in 1860 by economist Henry Dunning Macleod after Sir Thomas Gresham (1519–1579), an English financier during the Tudor dynasty. Gresham had urged Queen Elizabeth to restore confidence in then-debased English currency.