This load the properties file:
Properties prop = new Properties();
InputStream stream = ...; //the stream to the file
try {
prop.load(stream);
} finally {
stream.close();
}
I use to put the .properties file in a directory where I have all the configuration files, I do not put it together with the class that accesses it, but there are no restrictions here.
For the name... I use .properties for verbosity sake, I don't think you should name it .properties if you don't want.