Multiracial Americans
A typical Latino American family may have members with a wide range of racial phenotypes, meaning a Hispanic couple may have children who look white and African and/or Native American and/or Asian. Latino Americans have several self-identifications; most Latinos identify as white in terms of race, while others identify as black and/or Native American and/or Asian. Latinos who do not want to identify as one of those identify simply as Hispanic and/or "some other race" as their race.
Latino
When and why the Latino identity came about is a more involved story. Essentially, politicians, the media, and marketers find it convenient to deal with the different U.S. Spanish-speaking people under one umbrella. However, many people with Spanish surnames contest the term "Latino". They claim it is misleading because no Latino or Hispanic nationality exists since no Latino state exists, so generalizing the term "Latino" slights the various national identities included under the umbrella.