A mortgage payoff letter can come in two forms. One form tells borrowers the remaining principal amount and interest they have to pay to close out the loan.This is a standard form of payoff letter. It must be completed with the financial requirements of the FTHB program in mind and on this form. Lender pre-qualification letters will not be accepted. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. May I allow the borrower to pay off or pay down debt to qualify for the mortgage? If so, do these accounts need to be closed? Click here to find the form you need to fill out.