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We have a oil burner/hot water radiator heating system in a 1500 sq ft house that is approximately 60 years old. This system also provides the hot water for the house. Furnace is probably 15 years old and appears to be ready to fail. Also have AC and duct work for first story which is probably at least 15 years old as well. Rarely use the basement, but it does have one radiator for the hot water system.
We would like to use a state loan program to replace at least the heating and hot water systems (capped at $15K). I have an energy audit scheduled for a couple of weeks from now which I am sure will focus on the need to seal and insulate. We definitely want to do this as well, but need to replace the heating system before it dies. Any thoughts on best retrofit options?