Was it Skeletor or He-Man who lived at Castle Grayskull? Did one of them live at Snake Mountain?
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Neither of those characters lived at Castle Grayskull.
In all continuities, The Sorceress is the current inhabitant of Castle Grayskull.
He-Man/Prince Adam resides in The Royal Palace of Eternia.
Skeletor resides in Snake Mountain, but has a specific objective of finding and overtaking Castle Grayskull.
In the 2002 series, Castle Grayskull was once the home of King Grayskull, who was an ancestor of Prince Adam/He-Man.
In the live-action movie, Skeletor did take over Castle Grayskull for a time, and could have been said to "live" there until his defeat at the end of the film.
phantom42
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Skeletor also traveled back in time in one episode and built a castle on the site of Castle Grayskull before Grayskull was there. The locals called him Ghost Face. Castle Grayskull and the pathway leading up to it are noticeably built from the bones of two ancient creatures who seemed to have died in mortal combat. Castle Grayskull was built out of and around their remains. But Skeletor never lived in Grayskull other than for a day or two in various episodes, comics, and the film. He wasn’t the original inhabitant. It’s not modeled after him.
Black and white art by Mark Lapping 
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