What is the best way to explain "base points" to someone that is not money savey?

Basis points are applied, or removed, in .125% increments to raise or lower one's interest rate. If basis points are applied, the rate ill be lowered, but closing costs will be increased. If basis points are removed, the rate will increase, but closing costs will decrease. One basis point is equal to one percent of the loan's value, i.e. you borrow $100,000 @ 1.00 basis points, your basis points = $1,000.

How do I calculat bases points

1 basis point = 1.00% of a loan's volume.
I.E.
$100,000 x .01 = $1,000