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I'm sure there is a leak somewhere, you may want to check it over thoroughlymaybe get some space heaters to cut down on heating costs
It sounds like it is not insulated and the unit is probably the wrong size.
put plastic on the windows and buy the insulators for behind the face plates on switches and plugs also a towel against the bottom of the outside doors will help keep drafts out and your heat will stay in.
Sounds like the house has very little if any insulation in itWeatherstrip around doors and windows to stop draftsIf you can stop the drafts, it will feel much warmerIt's also much cheaper than a $400 heat bill.
go pick up a phillieand stay away from aluminum foil.