Newbie-Refinancing primary home

[Shelby Smith]

I currently owe $54,000 on my house.  I would like to refinance and get $20,000 to put down on a house to build.  Make my primary house into a rental. This is the only option I see to be able to keep my current home.  Another option would to be just refinance the $54,000 and take no money.  I have excellent credit but I want to make a sound choice.