After you set your “mouse location” from the hit result you can set the Z of “mouse location” to the Z of “Original Location”. This should keep your character at the same Z value and avoid him flying up and down.
I can’t go into great detail as I’m at work and can’t actually see what I’m talking about. But you should be able to break the vectors to acquire their Z position. You would then set the Z position of Mouse location to the Z position of your Original Location.
I would highly recommend watching this tutorial series if you haven’t already. UE4 Blueprint Tutorials