The High Cost of Extra Space
Depending on where you live, a little extra space could increase your monthly mortgage payment by 50 percent, according to a new report from online real estate company Zillow.
Zillow, in its new Cost of Moving Up Analysis, reports that upgrading to a larger home comes with a premium in most major metros.
Nationally, families can expect to spend $447 extra a month moving to a three-bedroom home from one with two bedrooms. That equates to a 50 percent increase in their monthly mortgage payment.
In many coastal markets, moving from a two to a three-bedroom home costs around $500 extra each month. However, in hot markets like San Francisco and San Jose, families can expect to nearly double their monthly mortgage payment, with the premium on moving up exceeding $1,600.
Move-up buyers in the Midwest will see their dollars stretch further.
Families in Chicago, Cincinnati and St. Louis can expect to spend just $150 more on their mortgage when upgrading from a two to a three-bedroom home. Cleveland offers the lowest premium out of all the metros analyzed, with move up buyers paying just $74 extra a month to upgrade to a three bedroom.
Bathroom count can also impact a home’s price. Nationally, upgrading to a house with the same number of bedrooms, but with one extra bathroom can cost buyers between $386 and $838 extra a month, depending on the home size.
Given this premium, adding an extra bathroom to an existing home may be a cost-effective option for some families, Zillow reports.
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