Low FICO mid score
Best bet would be to go FHA, would require 3.5% down payment. If you're waiting for the house to sell prior to purchasing a new home it would give us ample time to work on getting you to 640 or above which would qualify you for the best rate available. Feel free to call me at the office if you have a few...

Refinance To A 20- Or 30-Year Mortgage?
Going to a shorter term would require an appraisal, if the house doesn't appraise then no shorter term. Best bet would be to qualify for a new 30 year term under the HARP 2.0 program to lower the rate and payment. If you were to make the same payment as if the refinance never happened that extra money...