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.Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. 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 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. The Loan Repayment Program (LRP) is a special incentive that the Army offers to highly qualified applicants entering the Army. How do I find out a Heartland Bank loan payoff amount?