Edit, sign, and share payoff letter template online. No need to install software, just go to DocHub, and sign up instantly and for free.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. What is a Payoff Agreement? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Edit, sign, and share private mortgage payoff letter template online. The mortgage discharge or lien release is recorded.