$$\lim _{x\rightarrow 5}\frac{x^2-25}{x-5} = \lim_{x\rightarrow 5} (x+5)$$
I understand that to evaluate a limit that has a zero ("hole") in the denominator we have to factor and cancel terms, and that the original limit is equal to the new and simplified limit. I understand how to do this procedurally, but I'd like to know why this works. I've only been told the methodology of expanding the $x^2-25$ into $(x-5)(x+5)$, but I don't just want to understand the methodology which my teacher tells me to "just memorize", I really want to know what's going on. I've read about factoring in abstract algebra, and about irreducible polynomials (just an example...), and I'd like to get a bigger picture of the abstract algebra in order to see why we factor the limit and why the simplified is equal to the original if it's missing the $(x-5)$, which has been cancelled. I don't want to just memorize things, I would really like to understand, but I've been told that this is "just how we do it" and that I should "practice to just memorize the procedure."
I really want to understand this in abstract algebra terms, please elaborate. Thank you very much.

Here's the basic idea: You're given a rational function, $f\colon \Bbb R \setminus \{5\}\to \Bbb R$, which is continuous everywhere in its domain.
You want to find the limit of that function at $5$.
One way to do that is to construct a continuous extension of that function, $g\colon \Bbb R \to \Bbb R$, such that $g(x) = f(x)$ whenever $x$ is in the domain of $f$. Then $$\lim_{x\to 5}f(x) = \lim_{x\to 5} g(x) = g(5).$$
In this case, factoring and cancelling accomplishes that objective.