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.The first step is to get in touch with your lender or loan servicer. You can find their contact information on your monthly statements. A 10day payoff refers to the time it takes for your new lender to pay off your old loans during a refinance. 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 lender's payoff statement or letter will show the amount you need to pay to completely close out the loan. Is it better to accumulate debt over the month and pay it at its due date? Or just frequently be paying them back and basically using it like a debit card?