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.The payoff amount isn't just your outstanding balance; it also encompasses any interest you owe and potential fees your lender might charge. The mortgage payoff statement is a document that provides a comprehensive breakdown of the remaining balance on a mortgage. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Forced Mortgage Payoff. IRS forms; Loan documents; W2s; Medical bills; Paystubs; Bank statements. Watch Out for Phishing Scams. It is organized into three levels.