Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.How to fill out the Payoff Request Letter Templates? Our Payoff Letter template facilitates easy loan settlements. This document clearly outlines the final payment amount, including any interest or fees. What is a Payoff Agreement? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. This is a sample template letter to your creditors explaining that you can no longer make payments at this time.