diff --git a/examples/ansible.cfg b/examples/ansible.cfg
index 7a21f7c0bf..c61f30d359 100644
--- a/examples/ansible.cfg
+++ b/examples/ansible.cfg
@@ -13,8 +13,8 @@
 
 #inventory      = /etc/ansible/hosts
 #library        = /usr/share/my_modules/
-#remote_tmp     = $HOME/.ansible/tmp
-#local_tmp      = $HOME/.ansible/tmp
+#remote_tmp     = ~/.ansible/tmp
+#local_tmp      = ~/.ansible/tmp
 #forks          = 5
 #poll_interval  = 15
 #sudo_user      = root
@@ -305,7 +305,7 @@
 # 
 # Example: 
 # control_path_dir = /tmp/.ansible/cp
-#control_path_dir = $HOME/.ansible/cp
+#control_path_dir = ~/.ansible/cp
 
 # The path to use for the ControlPath sockets. This defaults to
 # "%(directory)s/ansible-ssh-%%h-%%p-%%r", however on some systems with
diff --git a/lib/ansible/constants.py b/lib/ansible/constants.py
index 2f77284d82..41bf00ed9c 100644
--- a/lib/ansible/constants.py
+++ b/lib/ansible/constants.py
@@ -174,8 +174,8 @@ DEFAULT_DEBUG             = get_config(p, DEFAULTS, 'debug',            'ANSIBLE
 DEFAULT_HOST_LIST         = get_config(p, DEFAULTS,'inventory', 'ANSIBLE_INVENTORY', DEPRECATED_HOST_LIST, value_type='path')
 DEFAULT_MODULE_PATH       = get_config(p, DEFAULTS, 'library',          'ANSIBLE_LIBRARY',          None, value_type='pathlist')
 DEFAULT_ROLES_PATH        = get_config(p, DEFAULTS, 'roles_path',       'ANSIBLE_ROLES_PATH',       '/etc/ansible/roles', value_type='pathlist', expand_relative_paths=True)
-DEFAULT_REMOTE_TMP        = get_config(p, DEFAULTS, 'remote_tmp',       'ANSIBLE_REMOTE_TEMP',      '$HOME/.ansible/tmp')
-DEFAULT_LOCAL_TMP         = get_config(p, DEFAULTS, 'local_tmp',        'ANSIBLE_LOCAL_TEMP',      '$HOME/.ansible/tmp', value_type='tmppath')
+DEFAULT_REMOTE_TMP        = get_config(p, DEFAULTS, 'remote_tmp',       'ANSIBLE_REMOTE_TEMP',      '~/.ansible/tmp')
+DEFAULT_LOCAL_TMP         = get_config(p, DEFAULTS, 'local_tmp',        'ANSIBLE_LOCAL_TEMP',      '~/.ansible/tmp', value_type='tmppath')
 DEFAULT_MODULE_NAME       = get_config(p, DEFAULTS, 'module_name',      None,                       'command')
 DEFAULT_FORKS             = get_config(p, DEFAULTS, 'forks',            'ANSIBLE_FORKS',            5, value_type='integer')
 DEFAULT_MODULE_ARGS       = get_config(p, DEFAULTS, 'module_args',      'ANSIBLE_MODULE_ARGS',      '')
@@ -300,7 +300,7 @@ MAX_FILE_SIZE_FOR_DIFF         = get_config(p, DEFAULTS, 'max_diff_size', 'ANSIB
 # CONNECTION RELATED
 ANSIBLE_SSH_ARGS               = get_config(p, 'ssh_connection', 'ssh_args', 'ANSIBLE_SSH_ARGS', '-C -o ControlMaster=auto -o ControlPersist=60s')
 ANSIBLE_SSH_CONTROL_PATH       = get_config(p, 'ssh_connection', 'control_path', 'ANSIBLE_SSH_CONTROL_PATH', u"%(directory)s/ansible-ssh-%%h-%%p-%%r")
-ANSIBLE_SSH_CONTROL_PATH_DIR   = get_config(p, 'ssh_connection', 'control_path_dir', 'ANSIBLE_SSH_CONTROL_PATH_DIR', u'$HOME/.ansible/cp')
+ANSIBLE_SSH_CONTROL_PATH_DIR   = get_config(p, 'ssh_connection', 'control_path_dir', 'ANSIBLE_SSH_CONTROL_PATH_DIR', u'~/.ansible/cp')
 ANSIBLE_SSH_PIPELINING         = get_config(p, 'ssh_connection', 'pipelining', 'ANSIBLE_SSH_PIPELINING', False, value_type='boolean')
 ANSIBLE_SSH_RETRIES            = get_config(p, 'ssh_connection', 'retries', 'ANSIBLE_SSH_RETRIES', 0, value_type='integer')
 ANSIBLE_SSH_EXECUTABLE         = get_config(p, 'ssh_connection', 'ssh_executable', 'ANSIBLE_SSH_EXECUTABLE', 'ssh')