"Payoff amount" is generally higher than the remaining balance on the home. 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. 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. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. Your first step is to work through a mortgage loan documents checklist to gather the financial documents you'll need to get pre-approved for a home loan.