Congratulations on your weight loss!
Sixty (60) pounds lost? That takes determination and dedication over many weeks. I congratulate you on being able to stick with it.
Re: flab: I hate to be the bearer of bad news, but after skin has been stretched by overweight, it does not shrink back when the fat is replaced by muscle. That's why many people who have bariatric surgery and lose 100 or more pounds, later have plastic surgery to remove the excess hanging skin.
So my advice to you is:
1. Keep up the good work--you are obviously doing the right things
2. Continue to exercise to develop beautiful strong muscles.
3. When you get to your ideal weight, or as close to it as you think you are going to get, consider seeing a plastic surgeon.
AND when you get discouraged, talk to (or post on weight loss forums) people who are on the same journey you are to get a boost of encouragement. We're all pulling for you.