With home prices still near record highs in many parts of the country, jumbo mortgages -- loans for more than $417,000 -- are almost common.

But you need to ask yourself some very hard questions before borrowing that kind of money.

Can you realistically afford to pay $3,000 or more, month after month? Do you have enough savings to keep up with the payments if you get seriously ill or lose your job? If you get a jumbo loan, what else will you be able to afford?

Only you know what your actual cost of living is, what your priorities are, and how much of your income you are willing and actually able to dedicate to making mortgage payments -- even if a lender is willing to give you more.

We buy houses to live in, not to be trapped in because we can't afford to do anything but make our monthly payments.

The key is to find a loan you can live with, even if it means buying a less expensive house that requires you to borrow a more affordable amount.

Like smaller loans, jumbos come in fixed-rate, interest-only and adjustable-rate varieties. But there's one thing you can count on: You'll pay a higher interest rate than on a conventional loan.

And no matter what type of jumbo loan you choose, you need to focus on your own risks, because when you are looking at a jumbo loan, the risks are big. Just consider the size of the monthly payment.