This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. The City of San José processes requests for payoff demands of existing homebuyer and home repair loans, and affordability restrictions (i.e. 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. 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. This financial calculator helps you find out.