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.A payoff letter shows the remaining balance on your mortgage, including fees, interest, etc. Learn more about what a payoff quote is and how to request one. 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. I'm selling my house with a closing date of January 9th. I received my mortgage payoff letter from Pennymac that is good through January 12th. 1) Call the mortgage department and request an official principal payoff letter. First you need to know what the payoff figure is.