I am looking to refi throughout the HARP 2 refinance program.
Becky, Becky, Becky......there are a lot of "legitimate" Brokers out there like myself. I'm a one man shop who personally handle your transaction from beginning to end, insuring you get the professional service you deserve.Jim Kenny El Conquistador Mortgage, Inc...

fixed or variable rate better for me?
With rates undoubtedly going to move up sometime, I'd recommend the fixed rate. Also, don't pay any points because your breakeven period will be beyond the 5 years you expect to be in the property.

Is a 4.8% rate with 729 credit considered good?
Based on the little info provided, I'd expect your rate to be at least 1% lower.

how can i get lower mortgage insurance cost
If you have a Conventional Loan, the mortgage insurance should automatically go away when your balance reaches 78% through normal payments. If you feel you are under 75% of current value you can request the MI be dropped by your Lender....they'll probably require an appraisal. If you have an FHA loan, the...

We have not owned a home for five years. We live in Arizona. If we buy a home in 2016 can we be considered first time home buyer
Yes

This might sound like a dumb question but do I need to get prequalified if I'm paying cash for a home?
No, but you'll need to show the seller proof of your funds to close.

1st time home buyer.
So what's your question? Go buy anything you can afford monthly !!!!