What does paying points on a money borrowed money means

[Hilary Nwakor]

What does paying points on a money borrowed from hard money lender means? 

For example, if you borrow $100,000 from a hard money lender at 16% and it takes you 6 months from start to finish to pay it back, your interest charges would be $8,000. And if you had to pay points at say 4 points, that’s a further $4,000, adding up to grand total in $12,000 in interest charges! I'm a little bit confused on the 4 points and don't know what it means.