Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.A letter of explanation can clarify your financial situation and get you one step closer to qualifying for a mortgage. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. 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. Loan Payoff Request correspondence on SSFCU letterhead. Instructions. Fill out online and submit. Create a Loan Payoff Letter online and download it as a PDF or Word document.