diff --git a/app/resources/payoff.py b/app/resources/payoff.py
new file mode 100644
index 0000000..dba5c70
--- /dev/null
+++ b/app/resources/payoff.py
@@ -0,0 +1,73 @@
+"""Pay-off endpoints."""
+from datetime import date
+from decimal import Decimal
+from enum import Enum
+from typing import Optional
+
+from fastapi import APIRouter
+from pydantic import BaseModel, Field, validator
+
+from app.logging import get_logger
+
+router = APIRouter()
+logger = get_logger(__name__)
+
+
+class PayoffStatus(str, Enum):
+    """Enum for payoff status values."""
+    PROCESSED = "processed"
+    PENDING = "pending"
+    FAILED = "failed"
+    CANCELLED = "cancelled"
+
+
+class PayoffRequest(BaseModel):
+    """Request model for loan payoff."""
+    loan_id: str = Field(..., description="Loan identifier", min_length=1, max_length=50)
+    payoff_amount: Decimal = Field(..., description="Payoff amount", gt=0, decimal_places=2)
+    payoff_date: date = Field(..., description="Payoff date")
+    borrower_name: Optional[str] = Field(None, description="Borrower name", max_length=100)
+    payment_method: str = Field(..., description="Payment method", regex="^(check|wire|ach|cash)$")
+    notes: Optional[str] = Field(None, description="Additional notes", max_length=500)
+
+    @validator('payoff_date')
+    def validate_payoff_date(cls, v):
+        """Validate payoff date is not in the future."""
+        from datetime import date
+        if v > date.today():
+            raise ValueError('Payoff date cannot be in the future')
+        return v
+
+
+class PayoffResponse(BaseModel):
+    """Response model for loan payoff."""
+    status: PayoffStatus
+    loan_id: str
+    payoff_amount: Decimal
+    payoff_date: date
+    transaction_id: str
+
+
+@router.post("/payoff", response_model=PayoffResponse)
+async def create_payoff(payoff_request: PayoffRequest) -> PayoffResponse:
+    """Create a loan payoff record."""
+    
+    logger.info(f"Processing payoff for loan {payoff_request.loan_id}")
+    
+    # TODO: Add database logic to process payoff
+    # For now, return a mock response
+    
+    import uuid
+    transaction_id = str(uuid.uuid4())
+    
+    response = PayoffResponse(
+        status=PayoffStatus.PROCESSED,
+        loan_id=payoff_request.loan_id,
+        payoff_amount=payoff_request.payoff_amount,
+        payoff_date=payoff_request.payoff_date,
+        transaction_id=transaction_id
+    )
+    
+    logger.info(f"Payoff processed successfully for loan {payoff_request.loan_id}, transaction {transaction_id}")
+    
+    return response
diff --git a/main.py b/main.py
index cba66d7..72cfdf1 100644
--- a/main.py
+++ b/main.py
@@ -9,7 +9,7 @@ from sentry_sdk.integrations.fastapi import FastApiIntegration
 from app.config import settings
 from app.logging import configure_logging, get_logger
 from app.middleware import logging_middleware
-from app.resources import health
+from app.resources import health, payoff
 
 
 def create_app() -> FastAPI:
@@ -43,6 +43,7 @@ def create_app() -> FastAPI:
     
     # Include all endpoint routers
     app.include_router(health.router, tags=["health"])
+    app.include_router(payoff.router, tags=["payoff"])
     
     return app