What do "points" mean in a loan?

What do "points" mean in a loan?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "balloon payment" mean?; What does "base value" mean"?; What does "buy here, pay here" financing mean? and more...

Points are additional charges that are incurred when you take on the loan in the first place, and in this case one point equals one percent of the purchase price of the loan.