Name of Mortgage Servicer. Creating a payoff letter is essential to any loan or mortgage repayment process.Our free templates and this guide can help you get started. 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. A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. ContractsCounsel has assisted 37 clients with payoff agreements and maintains a network of 28 financial lawyers available daily. Get a Pre-Approval Letter from a lender for a fixed-rate mortgage. In filling out the necessary papers.