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.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 is an example of a payoff letter used in a syndicated loan transaction. Why do I need a Payoff Letter? 5. I need to speak with a mortgage representative, why can't I come into the office like other government agencies? Pay us the premiums, fees and charges for the policy. c. There are no startup fees, closing fees, or penalty fees. Fees shall be invoiced monthly in arrears directly to the Water Authority.