Note: This form must be downloaded to your device in order to be filled out properly. It must be opened in Adobe Acrobat Reader.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. Most of the forms in the table below are in PDF format and will open automatically with most current web browsers. Some fillable forms are in Word format. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. If in agreement, the payor can provide payment immediately. However, if the issue involves a small claims court, this could result in a settlement.