Cancelling PMI

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What is the name of your state (only U.S. law)? Indiana



I refinanced my home in December of 2004. The appraised value was 103000 and the loan was for 87000. That made the LTV (loan to value) 84.466%. Currently I owe 80152 which is 77% LTV from original value.
In my original paperwork there is a paper called PMI initial discloser. It says
Borrower requested cancellation
1. The date the principal balance of your loan is first scheduled to reach 80% of the original value of the property this date is 11/1/2008
2. The date it actually reaches 80% which was 3/1/2008 (11 months ago)

Or it will cancel automatically at 78% on 5/1/2010

I called ASC to cancel and they said they would send the paper work.
I received a letter stating that I am currently at 92.2% LTV and that I could
1 Send a payment of 10,657
2 Pay until PMI 6/1/2016
3 auto cancel on 4/1/2017
4 Pay 360 for a new appraisal and if it comes in above 107000 than it will be cancelled

I called them and they say that LTV is based off the loan value not the appraisal.
I read the federal code from the Homeowners protection act and it says
That I can “request cancellation when the loan reaches 80% of the original purchase price or appraised value which ever is less.” ASC is saying that that the refinance amount is the purchase price 87000 and that 80% is not correct I need to be at 75% or 65250 to get it cancelled.

They said the paper I have is from the original mortgage and maybe thats how that place calculated it but at ASC they do it different.

I think an appraisal would come in at 95000 right now so that is not an option
My payment is 640 with Escrow and I always pay 800 never late not even once. My PMI is 29/month.
Can they just change the terms of my loan/pmi?
I only signed a paper stating I would pay until 2010 at latest.
Should I file a lawsuit or what else can I do.What is the name of your state (only U.S. law)?