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will insulating outside walls make a big difference in temperature of room?



we have a house that was built around 1950 in michigan. there is new siding on the house, but no insulation other than tyvek paper. there is no insulation inside the walls either. we recently had the blown insulation put into the attic. our living room has 2 outside walls and currently we have the temperatue set for 70 degrees. we have a digital thermometer that reads at 56 degrees in the living room which is located approximately 10ft away from the thermostat connected to the furnace. we were considering to have the blown insulation done in the exterior walls, but got a quote for approx. $3800. would it be beneficial if we were to put regular insulation in the walls and styrofoam board under the insulation (ultimately it would be cheaper to do that, instead of the blown insulation but more work). please give me some suggestions as to how we could fix this problem.

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