A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. 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. A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. 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 borrower should: ∎ Confirm the interest rate is consistent with the loan agreement. adequate. Before the payoff letter expires or must be reissued. Customize and Download this "Sample Pay Off Loan Letter".