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A basis point is 1/100th of 1%. For example the difference between a loan at 9.00% and a mortgage at 9.12% is 12 basis points.
If you read mortgage contracts, agreements or literature you may well come across basis points.
An increase in basis points means increased monthly payments. However, when choosing a mortgage product it is important not to get overly fixated on the APR.
With an ever more complex market place lenders have developed ways to give with one hand and take away with another. Have you heard the offerings "free valuation fees", "introductory rate" etc. It can be useful to look at the cost of the loan over a fixed period, for exampple 5 years. This will factor in fees and highlight redemption penalties while considering the monthly payment.
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