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 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. Please contact one of our agents at 1(800) 255-5897 for more information. 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. FMFCU would consider this a used car loan. Loan servicing and loan modification information from Carrington Mortgage. Of those, 8.4 million resulted in loan originations.