1 point = 1% of the loan amount. So 1.375% points would equal 1.375% of the loan amount. On a $100k loan amount it'd be $1,375.
Points are paid to lower the interest rate below the rate you would get if you didn't pay any points.
For example you may get 4.125% for no points, 4.000% for .625% points, and 3.875% for 1.375% points. Paying points can be a good idea if you plan on having the loan for a longer time, as you will pay more money up front but will get a lower payment. So for example if you had to pay $1,375 in points to save $14/mo in your payment, then after 99 payments you would break even (assuming no inflation, remember a dollar today is worth more than a dollar tomorrow).
You can ask your loan officer how many points would other interest rates cost, and what the monthly payment would be for each of those interest rates, so you can determine what rate & points combination would be best for your plans.
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