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. A letter of explanation is your chance to answer any questions a lender might have about your loan application. The letter is a request from Emma Baluyot to settle her debt with Althea Financing for 150,000 pesos. 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. 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. The only way to come off the mortgage is for your spouse to refinance or pay off the loan.