Interest payments are calculated based on the amount of your line of credit that you have drawn down, multiplied by the interest rate. The line of credit interest rate is a variable interest rate composed of a set spread and a variable component tied to a common industry benchmark rate, such as the Secured Overnight Financing Rate (SOFR). As the benchmark changes, the all-in rate on your line of credit will fluctuate and therefore the calculation of interest payments on your loan will also fluctuate. Interest rates are offered in a tiered structure and will vary based on the amount of the loan commitment. The interest rate you will pay on your line of credit may be higher than the rate you would pay if you dealt directly with the third-party lender; not all banks offer these types of loans directly to the public.