With two kids it's becoming clear that we are outgrowing our 3 bedroom 1100 sq ft ranch. The problem is we don't know where to go from here. Does it make more sense financially to sell and buy a new house or add on to our existing one? Here are some key facts..
-We have a 20 year mortgage that we are 5 years into paying off.
-Because of having a 20 year vs 30 and 2 daycare payments, our monthly payments are about the max we want to spend. We could probably swing another couple hundred more, and more than that in a few years.
-We don't need a second story addition, but would like a bigger kitchen, master bedroom, and family room.
The home prices in our town and the surrounding towns are not cheap, so our monthly payment wouldn't be lower, but at least we could use the money from selling towards a down payment. Even with that though, I'm worried we could get a bigger, but not necessarily nicer house.
-We only have enough money in our savings right now for maybe a kitchen remodel

I'm stumped