Refinance or wait.

Hello everyone,

I currently own a home worth 405k. We owe 342k. Our interest rate is 7%. We have been in the home 1 year.I currently work full time and my wife works part time remote. We have a 4 month old. Our monthly payment is 2641 including taxes/insurance. Our annual income is around 100k. Right now, monthly interest is around 2k and principal is 300. Yearly, its between 24-28k. We really want my wife to stop working in the next year or twoband we are tired of losing so much interest monthly.

I am debating on if it is worth spending 12-15k to pay down a permanent rate to 5. 5% bringing our monthly mortgage to $2300. I believe our interest would go from 24k to 18k ish. We plan to be in this home for 3-5 more years, then possibly rent it out if that becomes an option. This would give us around $330 monthly in cash flow and our break even point is 48 months. One lender was willing to do this, another lender told me to wait because he believed rates were going to drop to 4 percent next year, which im skeptical about. I am really open to other ideas and input, or what I may have done wrong calculating. Thanks!