Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.It lays out each fee and dollar still due before you completely pay off your mortgage. Here's how it works. Send sample payoff letter for private mortgage via email, link, or fax. You can also download it, export it or print it out. A Private Mortgage Payoff Letter Template is a document that serves as proof of the outstanding balance on a private mortgage loan.