Well most people are going to tell you that latino stands for people of latin american origin and that hispanics are all spanish speaking people.(including spain) Too me its a little more complex than that you see depending on the country you come from tends to determin the word you would most likely use for example people from Puerto Rico and the surrounding islands tend to refer themselves as latinos. people from Mexico(hispanic and latino usage are about 50/50 due to increase assimilation and contrast between native vs Americanise) and central america tend to call themselves hispanics while south america tends to call themselves latinos. Lately the term Latino has taken a stonger stance much in part to the increasing latino population in the United States and a momement of people to implement latino as the standart. George Lopez and Alex Raymundo have done there part with bits poking fun at the term Hispanic and using the term latino freely.

Besides the term hispanic is so negative think of other words that rhyme with hispanic, satanic, manic, panic! see now find bad connotations that end with ino!

NOTE: the following is cut and paste from source
Though often used interchangeably in American English, Hispanic and Latino are not identical terms, and in certain contexts the choice between them can be significant. Hispanic, from the Latin word for "Spain," has the broader reference, potentially encompassing all Spanish-speaking peoples in both hemispheres and emphasizing the common denominator of language among communities that sometimes have little else in common. Latinowhich in Spanish means "Latin" but which as an English word is probably a shortening of the Spanish word latinoamericanorefers more exclusively to persons or communities of Latin American origin. Of the two, only Hispanic can be used in referring to Spain and its history and culture; a native of Spain residing in the United States is a Hispanic, not a Latino, and one cannot substitute Latino in the phrase the Hispanic influence on native Mexican cultures without garbling the meaning. In practice, however, this distinction is of little significance when referring to residents of the United States, most of whom are of Latin American origin and can theoretically be called by either word.·A more important distinction concerns the sociopolitical rift that has opened between Latino and Hispanic in American usage. For a certain segment of the Spanish-speaking population, Latino is a term of ethnic pride and Hispanic a label that borders on the offensive. According to this view, Hispanic lacks the authenticity and cultural resonance of Latino, with its Spanish sound and its ability to show the feminine form Latina when used of women. Furthermore, Hispanicthe term used by the U.S. Census Bureau and other government agenciesis said to bear the stamp of an Anglo establishment far removed from the concerns of the Spanish-speaking community. While these views are strongly held by some, they are by no means universal, and the division in usage seems as related to geography as it is to politics, with Latino widely preferred in California and Hispanic the more usual term in Florida and Texas. Even in these regions, however, usage is often mixed, and it is not uncommon to find both terms used by the same writer or speaker

Hispanic is a term referring to Spanish speaking countries. While Latino is a term that refers to countries within Latin America. Which are countries located south of the mainland United States.

I believe Hispanic refers to those from predominantly Spanish speaking countries, while Latinos refer to those from Latin America.