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. This article outlines the fivestep process of making your final loan payment. Step 1: Request a payoff quote. 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.