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 payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. 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 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. Since the interspousal deed is so commonly requested, we are including a sample in this guide. ContractsCounsel has assisted 37 clients with payoff agreements and maintains a network of 28 financial lawyers available daily. Office closure Our Los Angeles office is currently closed.