The City of San José processes requests for payoff demands of existing homebuyer and home repair loans, and affordability restrictions (i.e. 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. A letter of explanation is your chance to answer any questions a lender might have about your loan application. 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. The loan origination process involves numerous documents at every stage— pre-qualification, application, processing, underwriting, approval, and closing. Ghafarinia or Principal of Apex Financial Solution: I am writing regarding certain advertising for your mortgage loan modification business.