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 letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work. A mortgage lender might ask you to write a letter of explanation to better understand your finances when deciding whether to approve you for a loan. Request your free payoff quote in one of two convenient ways. You'll choose your good-through date up to 30 days. This is an example of a payoff letter used in a syndicated loan transaction. File a credit dispute, set up recurring mortgage payments, add authorized users and more with downloadable mortgage forms and documents from Truist.