You touch on subjects that we know nothing about for snowbird. My suggestion was simply between whether it was better to stick it in a 401K or to get a 15 year loan. Of those two options I would morph it to the third option that I presented.

Putting it in his 401K does not leave it liquid. Getting the 15 yr loan locks you into a higher payment.

The scenario I presented, reduces principle, reduces interest and reduces debt. It also leaves you the possibility of changing that scenario in an instant if you need to increase cash and reduce your payment.