It should specify a repayment term and payment schedule, an interest rate, and other contingencies, such as how late payments or a default will be handled. Create a Loan Payoff Letter online and download it as a PDF or Word document.Customize and print a blank Loan Payoff Letter for free. A letter of explanation can clarify your financial situation and get you one step closer to qualifying for a mortgage. The document provides clarity for both the borrower and the lender, establishing important terms and conditions pertaining to both parties. A collection of all the forms and and documents that are posted on the San Diego Housing Commission's (SDHC) website, listed in one location. This loan agreement between family members template outlines each party's responsibility and takes their word in writing. This document serves to release both the lender and borrower of their obligatory roles set forth in the original loan agreement. Arrange payoff of their loan prior to moving out of the property. Original Lender assigned all of its interest in the Loan Documents to Lender.