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Hourly rate is fine as long as you have a limit on the total amount. Hourly rate left open ended is a recipe for disaster.

He knew where you lived before you gave him your brief. And how does your location alter it by that huge amount. I would be demanding that he re does it in the initial design brief (to your budget) or a full refund. You arent talking about small change there, dont just accept it.

What was the architects reason when you questioned them about the huge over budget?