To determine the remaining loan balance, we can think “how much loan will these loan payments be able to pay off in the remaining time on the loan?” We want the remaining balance after 5 years, when 2...To determine the remaining loan balance, we can think “how much loan will these loan payments be able to pay off in the remaining time on the loan?” We want the remaining balance after 5 years, when 25 years will be remaining on the loan, so we calculate the loan balance that will be paid off with the monthly payments over those 25 years.