Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.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. 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. Filling out this form is straightforward. This is an example of a payoff letter used in a syndicated loan transaction. How to fill out the Mortgage Payoff Statement Request Form? Once you pay off your mortgage, the mortgage lender also referred to as the "trustee" creates the deed of reconveyance.