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Because you are 60, you will not be subject to 10% early distribution penalty as long as you take distributions from your own retirement plan so the only thing you have to worry is the income tax and tax bracket. You can start taking regular distributions enough to cover your living expenses and the mortgage.
It is never a good idea to take such a large distribution to pay off your mortgage. The taxes will be huge and your money will be tied up in home equity and not easily accessible if needed. People who do that often end up with a huge home equity loan or reverse mortgage because they run out of cash at 70 or 75. Another issue with paying off your mortgage using your retirement funds is that if you ever get in financial difficulties, the creditors can take your house but only IRS can touch your retirement account.
If you really want to do it, than spread it over several years. If you take a lump sump distribution you will be paying at least 15% in taxes if not more. I am pretty sure your mortgage interest is one third of it. If you take smaller distributions you could still keep it in 10% tax bracket.