A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work.They'll figure out the amount at closing and you'll get the right amount. I am writing to provide you instructions on how to apply payments when I send an amount greater than the minimum amount due. The mortgage payoff statement is a document that provides a comprehensive breakdown of the remaining balance on a mortgage. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.