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 10day payoff statement tells you the amount you owe toward your loan in order for the loan to be closed and marked as "paid in full." Curious about how to get started with a personal loan? Let us help with a list of some of our most frequently asked questions! Mortgage Insurance, Estimated Escrow and Estimated Total Monthly. Payment. Are you drowning in debt? Tired of endless monthly payments and the crushing weight of loan balances? 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.