sshClient = paramiko.SSHClient()
sshClient.connect('127.0.0.1', username='matt', password='password')
channel = sshClient.get_transport().open_session()
channel.get_pty()
channel.invoke_shell()

while True:
command = raw_input('$ ')
if command == 'exit':
    break

channel.send(command + "n")

while True:
    if channel.recv_ready():
        output = channel.recv(1024)
        print output
    else:
        time.sleep(0.5)
        if not(channel.recv_ready()):
            break

sshClient.close()