7 yr ARM refi - I thought it was a good idea and now I dont know!

[Denise Lamkin]

We have 6 years left on the mortgage of or current home and have been thinking about refinancing since interest rates are currently 1/2 of our mortgage. The plan was to refi with a 7 year ARM and pull out a good amount to set aside to use as a down payment on another home, rent out our current home and let our renter(s) pay it off for us. However, now that we're pre approved and set to begin the process, I'm getting cold feet about spending thousands of dollars in closing costs. Thinking out loud here.... And wondering if we should just sit tight and leave everything as is for another year or two. Does it make sense to go ahead with our plan and refi since we know we'll definitely want to move within the next 2-5 years?