Im looking to do a STR in Ocean City Maryland and the vacancy rate, if I'm fully booked in the peak season (May -Sept), would be  58%!.

Each lender, for the most part, is going to have similar rates. it really comes down to communication and their process!

Insurance has been a big issue in our market this year as companies have jacked rates out of control. 

The terms of your mortgage and interest rate will remain the same and no refinancing would be required.

Lending could be an option but with interest rates high 7, I am looking for other creative options.

Yes, all of the above, some people will continue to pay for a full service agent, some people will pay for a discount, some people will forgo agents all together, I think we will see alot more variation then we currently see, but just like any other business there will be tiers, Ritz, Marriott, Courtyard, Fairfield inn but for agents. 

What is your current mortgage rate? 

There are other loan products out there with a varying degree of rates that could be alternatives, but I'm not an expert in mortgage products so I'd recommend speaking with a lender first. 

To get elevated rates on this one, we felt the interior needed a cosmetic face lift.

That FHA loan is assumable, so that might be attractive (depending on your rate).You could consider leaving the FHA loan in place and just move into a live in flip.