Document background
The Loan Payoff Letter is a crucial document in lending transactions within the United States, used when a borrower intends to fully satisfy their loan obligation. It provides the borrower with an official statement of the exact amount needed to pay off the loan, including principal, interest, and any additional fees or charges. The letter must comply with federal regulations such as the Truth in Lending Act and the Fair Debt Collection Practices Act, as well as state-specific requirements. It typically includes the payoff amount, good-through date, per diem interest, payment instructions, and information about releasing any security interests. This document is essential for loan satisfaction, refinancing transactions, property sales, and other situations where precise loan payoff information is required.
