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.Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. 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. Use blue or black ink to complete the top portion of the 3-Day Notice to Pay or Quit (see sample). The payoff demand processing fee is paid in escrow. Please see more information in the Payoff Demand Instructions.