One More Bedroom Can Jack Up Your Mortgage Payments

Apr 04, 2017

A warning to growing and potentially-growing families: Upgrading from a two-bedroom home to a three-bedroom residence can, depending on your location, increase your monthly mortgage payment by as much as 50 percent.

According to new data from Zillow, families can expect to spend $447 extra on their monthly mortgage payment if they move from a two-bedroom home to a three-bedroom residence. In pricey housing markets such as San Francisco and San Jose, families can expect to nearly double their monthly mortgage payment, with the premium on moving up exceeding $1,600—but in the Midwest, move-up buyers in such metros as Chicago, Cincinnati and St. Louis can expect to spend just $150, while buyers in Cleveland would only pay an extra $74 per month.

Of course, an extra bedroom usually requires another bathroom, and Zillow estimates that this additional space can cost buyers between $386 and $838 extra a month.

"While deciding whether to move is a personal choice, understanding how certain characteristics like size, location, or number of beds and baths, can impact a home's price can be hugely important when determining if a particular home is the right fit for you and your family," said Svenja Gudell, Zillow chief economist. "Even though many families may be prepared to spend extra for a larger home, just how much more may come as a surprise, especially for those living in coastal markets."

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Phil Hall

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Apr 04, 2017

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