Here is an example of what you will create with this tutorial:

01. Open Photoshop and load the image you wish to use. I chose this one found here.
02. Select the Horizontal Type Mask Tool.

03. Click on the image, it should turn reddish and the letters you type will look lighter. Your image should now look like this:

04. Now, click on the Move Tool. When you do, the text while become transparent and surrounded by the marquee.
05. Go to Edit, then Copy.
06. Open a new document and go to Edit, then Paste. There you will see your result.

Tip!: To add a more dramatic look to the text apply stroke (Layer-Layer Style-Stroke) to it, choose a color that is used in the image with which you created the text.

Another Example: