Should I refinance?

Should I refinance into a 5/6 ARM

I bought a house May 2024 with a 390K 30 Year loan and 6.99% Rate. I have the opportunity to refinance to 5.875%.

Current mortgage remaining: 381,774
Closing costs: $7300 estimate
Buy down: $136

I would save roughly $286 a month and increase my principal per payment about $29 a month for a total of $7560 over 24 months.

The refinance is a 5/6 ARM. I don’t plan on staying in this house more than 3-4 years with possibilities selling in 2 years. Is it worth it for me refinance to this?

It’ll build my principal up faster, save me on cash flow monthly.

The biggest risk I see is if i decide to stay here longer and would need to refinance in 5 years.

What say you? Is it smart to refinance to free up cash flow and use it towards investments while paying more in principal doing the 5/6 ARM?

Current 30- years are 6.25%. I don’t think we’ll see rate cuts anytime soon and risk rate hikes after mid terms. Fed already sees 3 rate hikes first starting in December if Iran keeps playing out

i’m 29 plan on getting married in 2-3 years selling the house that i’m currently house hacking in. Rental would be too hard for that property since it has a built in greenhouse and pool that makes utilities average $700-800 a month.

if i cannot sell i will continue to rent out the rooms and refinance at current rates. Current room rentals $2700 and my mortgage is $2592. With refi for 5 years its $2307 and i net the difference from the $2700 rental.

With the stars moving here, samsung hq, universals nearby and good school destricts / new roads being done i think the bear case for my home price is hard to reach.