My last reply was edited to add:
Another thing to consider: For tax purposes, the condominium is a 2nd home (unless you are charging rent). As such, the mortgage interest is deductible, as an itemized deduction, on Schedule A. But you cannot "double dip". That is you cannot deduct, on Sch A, the same interest you used to claim an educational expense ("room") for the 529 distribution. But, you can split the interest between the two tax attributes.
