I'm by far not an expert in things, but I've been around the block here a time or two and you hear things over and over again. I''m about where you've started and I have gone lower. (obviously gained it back)
For lose skin. Being young helps. But if you've been very overweight for very long then it's harder to not have that skin.
I've been a big girl all my life. so I know my skin is pretty much stretched, and I'm 30, not as young as I once was. Massage with the butter (make sure it has vitamin E) can help it slowly tighten back up. But if the elasticity of your skin has been broken, nothing but surgery can help you.
About spot reduction. I'm in the same boat. I have large thighs and huge arms. I hate sleeves because the shirt has to be a size larger just so my arms can fit. Spot reduction however, is impossible. You have to just lose the weight From what I hear, arms is the last place your body pulls fat from. What you can do is work those areas to tone up the muscle, tones muscle is tight and small, not bulky like men. which might shrink the area a bit. But you can't lose fat in just one spot.
Losing more than 2 pounds a week is max. (unless you are being watched by a Dr.) anymore than that and you risk messing up your metabolism. Think of it this way....the faster you lose the weight, the easier it will be to gain it back.
Also, the faster you lose the weight the better chance your skin will not snap back, because it's just too fast for it to adapt.
I'm sure others will chime in with all the science. But I hope this helps for now . ^.^