Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.The payoff quote will include any accrued interest and any applicable late fees, and will be valid for 10 days. Loan Account Number or VIN. Mortgage lenders ask for a letter of explanation to better understand your finances when determining whether to approve you for a loan. 1. Enter your personal information and amount owed. A letter of explanation can clarify your financial situation and get you one step closer to qualifying for a mortgage. A letter of explanation can clarify your financial situation and get you one step closer to qualifying for a mortgage. This is an example of a payoff letter used in a syndicated loan transaction. Download English and Spanish versions of TRID model and sample forms for different loan types.