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.Acceptable payment methods include eCheck and debit card. ProPay will not accept credit card payments. I asked them to send us a letter to show that it's been paid off. The rep said they "don't do that" and the'll report it to the agencies in 30-90 days. A 10day payoff refers to the time it takes for your new lender to pay off your old loans during a refinance. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Call our 24-hour automated service dedicated to payoff quotes at 1-877-505-2894.