Several times I have noticed that the thermostat reads current temp as 12 degrees above what it is outside, is this right as there is nothing on at the time in my house producing heat? Is my thermostat faulty or does my house hold heat? Example temp outside 64f temp in my house 78f. I don't understand why this is.

Place an accurate thermometer next to the thermostat. This will tell you what the true temp is at the thermostat. Many things will heat a home. Body heat, electronics, sun, etc.