Refinancing a 5.25% 30 years fixed rate to a 5/1 ARM at 3.25%?

I would like to refinance my mortgage with the same lender going from a 5.25% 30 years fixed rate to a 5/1 ARM at 3.25% I am looking at $3000 in closing cost. After the refinancing my total monthly payment will drop from $1140 to $928, saving me $212 per month or $2544 per year. I do not plan on moving in the next... show more I would like to refinance my mortgage with the same lender going from a 5.25% 30 years fixed rate to a 5/1 ARM at 3.25%
I am looking at $3000 in closing cost. After the refinancing my total monthly payment will drop from $1140 to $928, saving me $212 per month or $2544 per year. I do not plan on moving in the next five years. To me the math adds up to $12,720 savings over those five years of the ARM.
Is this a good idea? I plan on refinancing again to a fixed rate right before the ARM expires. My only fear is rates going way up by then. But given the state of the economy and the housing market in general, is that likely to happen? Would you do it?
Update: Ok Ok I get it. Most answers seems to think it is a bad idea. What if I plan on selling within the 5 years of the ARM? Would the $2544 saving in interest per year or $12,720 over the five years of the ARM still make sense?
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