Loan based on LIBOR rate plus points

[James Leos]

Hi BP,

I'm doing a cash out refi from a seller carried property I purchased in 2012. That same seller is interested in financing a new property for me, but with different terms. This is what his initial feedback was: rate will be about 4 points on top of the adjustable rate LOC I have (which is based on LIBOR or the equivalent U.S. benchmark) also the rate will be adjustable yearly on its anniversary...how can I convert what that rate is today, I understand it will change annually.

Thanks!