Payoff Letter

A Payoff Letter is a legal template used in financial or loan transactions to formalize the process of paying off an outstanding debt or loan balance. It is typically drafted by the lender, financial institution, or creditor and serves as documentation for the borrower, providing proof that all outstanding obligations have been fulfilled. This letter outlines the terms and conditions for repayment and includes essential information such as the outstanding amount, the agreed-upon interest rate, the due date for the final payment, and any additional fees or charges. Additionally, it may include instructions for the borrower on how to make the final payment and provide a clear timeline to complete the payoff process. By providing a Payoff Letter, both parties involved can ensure compliance with the terms of the loan agreement and bring clarity and closure to the financial relationship.