Put more $ down or towards buying down the rate?

[Taylor Robertson]

This will be my first home purchase. It is a duplex that I intend to own long term as primary residence and rental. My parents want to gift my $5,000 towards the house and want to know how it will be most beneficial to me. I am putting 5% down, which is about 14k. My rate is locked at 5.875%, and if the money is put towards buying down the rate, it will bring it down to 5.375%, which will save me ~$85 per month whereas putting the $ towards downpayment lowers it $30/month. My lender says I can refi down the line when rates drop so it may be better to put more down. I guess the last option would be putting the money towards closing costs since that is money upfront. Any recommendations? Thank you