You don't need 3 separate faucets. I have two: the main faucet I use for washing (which isn't filtered) and then a small hot/cold faucet that's hooked to the filter and the instant hot. I left the filtered cold dispenser out of my original description because it's integrated with the instant hot system. The filter faucet I have is this one, I think. The only thing I don't like about it is that the hot lever is spring-loaded as a "safety" feature, so you have to hold it down to keep the water flowing. (I put "safety" in sneer quotes because I think it's less safe to force me to keep my hand near the hot water.) I actually have a ice/water dispenser on the fridge too. It dispenses chilled water, but it comes out quite a bit more slowly than the non-chilled water from the hold/cold dispenser by the sink. I tend to use the one on the fridge for a quick glass of ice water and the one by the sink for filling pitchers and other big stuff. I didn't try hooking the main faucet up to a filter because I think it would take a big filter to maintain the water pressure and flow rate you'd want from a faucet used for washing dishes, rinsing vegetables, etc. If I have time I'll try to post some photos of what my set-up looks like from above and below the sink. I may have to do a bit of cleaning first, though. :-) Depending on how carried away you want to get, a whole-house filter is an option. My next-door neighbor the plumber re-piped his house and put a big whole-house filter and softer system in his garage. It's two sealed units about 1 foot in diameter and 4 feet high each. He says they have to be changed every 5-10 years depending on how bad the city water is. I can ask him for the brand and model number if you'd like. It looked like a big job to install, though, not a DIY project. (Even for me, and I'm not afraid of sweating copper pipes.) And I'm sure we're talking at least a couple thousand dollars for the equipment and labor. Laura

We purchased the Insinkerator water butler. If the 'hot' handle is pulled forward it does sputter. Press it back and the hot water flows. We do get air bubbles in the lines occasionally, but it always comes out and flows properly. This is my favorite luxury item in the kitchen. Hope you get it resolved.

You have a vented faucet. As the water heats up, the faucet will drip. This is normal and necessary if you would like to prevent damage to the tank. Sputtering and steaming are an indication that the temp may be set too high. The reason your water temperature is low, despite the fact that you have sputtering and steaming, is that as hot water is used it is replaced with chilled water, which fairly rapidly lowers the temperature due to the small tank size. That's just the way it is if you want both chilled and hot water from the same faucet.

Your builder is handing you a lot of BS there. These units are never considered a “necessary” luxury. Do you have the Sub Zero refrigerator? Pro style range? In some locations, those would be considered necessary at a certain level of build. A hot water dispenser? Ah, nope. Having had had one prior, it didn’t make it to the next kitchen. When you find yourself making excuses to use it, and those excuses are few and far between? Plus, to make tea, you want fresh oxygenated water heated to just shy of the boiling point for the best flavor. A freshly filled electric kettle is as rapid as happens for a pot of tea. For a cup, the microwave is the quick solution. Now, I collect tea pots, and have a whole cupboard of different teas, so someone who isn’t as fussy about it could be perfectly fine with an instant hot. I put that instant hot money into a whole house tankless water heater.