To make a very long and painful story short...I'll just offer the high level details. We have a 1440 SQ/FT Spanish style house in Phoenix Arizona. Our plan is to live in this home for 10-12 more years. The exterior is block and the builder added stucco to the front (only). We were saving up to replace our ~20 year old air conditioner, however the October hail storm required our insurance company to do this for us (sometimes...it's better to be lucky than good). A higher efficiency unit will help our energy bills, but we'd like to go a little further. First project will be adding 10-12" of cellulose insulation. The current fiberglass insulation is at or just above the rafters. Second project being considered is wrapping the house with Styrofoam outsulation and a fresh coat of stucco. We are bored with the exterior of the house and need/want a new change. Further - our east wall gets baked in the Az sun. This wall will have a thicker barrier and hopefully reduce the heat that builds up. I truly believe we will gain a financial benefit by adding insulation to the attic. My concern and request for feedback is about adding the outsulatoin and stucco. Would sure appreciate some sharing their experiences.