With your income being volatile, I would calculate what you need to live and pay the necessities for 6 months. Put this amount away in an interest bearing account. Never touch it unless you are in dire straights. Beyond that, I would keep a reasonable amount, maybe $10k in a checking or accessible savings account. Anything left over, throw towards a principal only payment on your mortgage. Absolutely would not draw from your 401k. Once those actions are taken & structure setup, I'd get on a budget & make sure to divert money towards investments + swing some extra towards the principal on your mortgage.
This right here. You're beating or at least equaling inflation on the house payment. I understand the volatile nature of your work... but like Atoler says, direct any extra monthly to the principal on the loan. Do not remove any from the 401K... did that years ago and lived to regret it.
