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. 1. Enter the lender's name and loan account number. This is a standard form of payoff letter. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. The one-time, federally funded California Mortgage Relief Program has awarded all homeowner grants and will not receive any more funding. One form tells borrowers the remaining principal amount and interest they have to pay to close out the loan.