Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free.It's a statement that breaks down the payoff figure for the loan assuming no intervening payments, on a future (specified) date. A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work. A payoff statement should include the name and address of the lender preparing the statement and be addressed to the lender that requested the payoff. To bring these subjects out of the realm of the abstract, we conducted.