There is insulation in walls, but not not up to modern standards.
Attic is also under-insulated.
Windows are double-pane Pella, 20-25 years old.
Basement foundation walls are not insulated.
The priority for building upgrades would then be:
1: air seal the attic floor/upper floor ceiling plane
1a: air seal the basement walls, starting with the foundation sill & band joists.
2: insulate the attic floor (no AC or heating ducts up there, right?)
3: insulate the foundation walls to a minimum of R15 continuous insulation (current IRC code for your location) from the basement slab all the way up to the first floor subfloor above. Using 2-3" of closed cell spray polyurethane (expensive, but effective) the air sealing & insulation can be done in one step. Using reclaimed roofing foam can be a much more economical DIY approach. (Search this forum or check back for details on how to do the latter.)
4: dense pack cellulose over the existing wall insulation, which will further tighten air leakage while fully filling all voids in the insulation.
With the existing house, assuming moderate but not excessive air leakage you're probably looking at a design heat load of ~75-80,000 BTU/hr, which could (and should) be verified by fuel-use load calculation methods. Simply air sealing the attic floor & basement walls (primarily foundation sill & band joist, as well as any obvious air leaks) can knock 5000 BTU/hr or more off the load numbers without spending a lot of money.
Assuming a 75,000 BTU/hr load, using ASHRAE's recommended 1.4x oversize factor the boiler need not have an output higher than 75K x 1.5= 105,000 BTU/hr. There are mod-cons out there in that size range that have 10:1 turn-down ratios, with a minimum firing rate in the ~10-12,000 BTU/hr range, which would be much less short-cycle prone than the 32K-minimum firing rate of the B2HB-160. If you're planning to do the building envelope upgrades you can go even smaller. Most homes that size can be handled by an ~80KBTU/hr mod con with a 10:1 turn down, and it would be more comfortable too, with longer, more consistent heating cycles on every zone.