A letter of explanation can clarify your financial situation and get you one step closer to qualifying for a mortgage. 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. Do you need a loan payoff request form? Set up your account to start managing your mortgage online. The purpose of the letter is to describe why the borrower may not be able to make their mortgage, car loan, or other debt payments. Comshort selling your San Diego Home. 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. Find their phone number on your card or statement.