Use the Type Mask Tool (1) to create a wide variety of text options.
When typing, the text will appear as a pink mask.
After Committing the Edit (2), the mask becomes a selection (marching ants),
as in the top row of text.
You can then make any desired modifications to the selection.
Examples:
The middle letters (3) are typed on a white fill. Then the selection is erased to reveal the image layer below and Stroked with black.
The bottom letters (4), typed on a new transparent layer, have a color gradient fill
along with Layer Style options of drop shadow and bevel/emboss.