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. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Shopping for the lowest Suffolk, VA mortgage and refinance rates? Becoming a member is easy! Loan Closure Letter Template in Word doc Personal Loan DocPro. Navy Federal 10 Day Payoff Letter Sample Word Editable.