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 agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. It should include specific details such as the loan account number, outstanding balance, and contact information. Find and fill out the forms you need. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Loan servicing and loan modification information from Carrington Mortgage. Complete the Release Documentation. What kind of home loan is right for me?