A mortgage payoff letter is a letter from a mortgage lender that explains to the borrower how to pay off the home loan. As the end of a loan agreement approaches, the borrower requests a mortgage payoff letter in order to avoid any confusion for either party.
An official mortgage payoff letter provides specific information, such as the exact date of the last payment and the exact amount due. Details about ways to make the last payment on the mortgage are also included. Details about how to adjust the payment amount in the event of early or late payment are also provided.