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Usually, refinancing will begin with you applying for a second loan or mortgage. Home equity loans are one way to help with refinancing your home. There are also lines of credit and other considerations that you can make in order to get some extra money into your home. The advantage of this is that when you go to sell your home, you will be able to value the price higher than it would have been with just the regular loan.
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You could invest in real estate because you need a house for yourself (that house of your dreams that you so badly want).
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If you are using a refinancing loan in order to consolidate bills or improve your credit, make sure that your finances are stable enough to allow you to pay off the refinancing loan.