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.Do you need a loan payoff request form? A payoff letter shows the remaining balance on your mortgage, including fees, interest, etc. Learn more about what a payoff quote is and how to request one. 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."