Yes, those numbers look correct. Remember, this mortgage is 30 years long, so you are paying the $134,000 in the example out over a long period of time - while making the payments more affordable, this also has the downside of increasing the total interest you pay since you are paying so little of the principal upfront.
My suggestion, go to bankrate.com, click on the calculators tab and find the mortgage payment calculator. When you get there, use $135,000 for your amount financed (principal), then use 10 years, 15 years, 20 years and 30 years for the length of the contract. Finally, plug in the 5.5% annual interest, and calculate the various payments. Make notes so you know how much you are paying total P&I - then multiply the actual P&I payment by the term length (i.e., $800 for 360 month) - you'll note as you shorten your term, your payments go up somewhat, but your total paid comes down significantly.
Then if you want to see why on that truth in lending (ignore #1, the form is really the truth, just ugly) shows what it does, you should see a button that shows an amortization schedule - click there it will show you all the payments by month an dhow much goes to principal and how much to interest, (you can do the same for all the various combinations). If you can swing somewhat higher payments (by reducing the term) ask the loan officer about the interest rates on shorter mortgages - they usually come in about one-quarter of a point lower which would save you extra money (run the shorter loans at the quoted rate and at 5.25% to see if that helps).
Most first time home buyers get shocked by the amounts you pay for interest, so you are not alone. note also that you can save interest by paying extra on your mortgage - even an extra $25 helps (I believe the bankrate calculator has a place to put in extra payments -0 throw in 425 per month and $50 per month to get an idea of how much you can save).