What is a payoff letter and how do I get one?

A payoff letter is an official statement from your lender showing the exact amount needed to pay off your loan by a certain date, plus where and how to send payment. You can usually request one through your lender's website, app or customer service line. The amount includes interest accruing daily, so it's only good until the date listed. Dealers often request it directly with your permission, but having your own copy helps you double-check the numbers on your deal.