We are purchasing a home and the company we are financing through is giving us 5 percent loan but on the truth of lending disclosure their showing annual percentage rate of 5.625 why is this and does this sound right thank you

The APR is a standard calculation mandated by law. This site (http://banking.about.com/od/loans/a/calculateapr.htm) shows how the APR is calculated and what goes into it.

If you have a question about the disclosure document have you discussed it with your lender?