This question has to exist somewhere, but I'm not sure what it would be called.
Following a height map, a terrain exists of right angle triangles. Each point of each triangle takes its height (y) from the height map.
If the character is at a particular set of coordinates, you can figure out which triangle they are in. What I forget how to do is determine the height of that point on the triangle by using the height of the other 3 points.