This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.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. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Step 2: Format your letter​​ Next, include a paragraph that states your account number, address and phone number. Find out how much you'll pay in Virginia state income taxes given your annual income. Customize using your filing status, deductions, exemptions and more. Find out how much you'll pay in North Carolina state income taxes given your annual income.