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.Interested in borrowing money for a mortgage, personal loan, or auto loan? Read through these common FAQs with Fifth Third Bank to learn more and apply. Applicant (Borrower) Instructions: 1. When your loan is paid off, your lender will send the lien release to the DMV. An IOU (I Owe You) is a legal document that sets out the details of a loan made between two people, a borrower, and a lender. What documents will I need to gather before the loan closing?