Why do I need a Payoff Letter? A payoff letter identifies the balance of subsidies which remain open at the time of its issuance.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. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. Rev up your new-car excitement with an auto loan that fast-tracks you to the driver's seat of your dream ride. Construction and personal loans, home equity lines of credit, and mortgage payments.