Your article on Aug. 24 headed ''The Neglected Bargain in Adjustables'' was fine as far as it went.
Unfortunately, it omitted a few points that are critical to a complete understanding of adjustable mortgages, and some potential serious shortcomings, specifically possible negative amortization and a distinction between ''payment'' and ''rate'' caps.
Many adjustables have a 2 point (for example) cap on payment, but not on the rate. In this situation, the borrower finds that although his payment may only go up 2 points at the end of an adjustment period, if the rates have increased more than 2 points, the difference is added to the unpaid balance resulting in negative amortization. ELLIOT RAPHAELSON Englishtown, N.J.