IF that's a Dana 44 than I think it's worth swapping if if has 3.55 gears. Definitely check to see that it actually is a 44 and check the gear ratio.

I would definitely not get it geared to 3.07, I would instead look into getting your current axle geared or swapped to a hp Dana 30 with 3.55s.

Do you run stock sizes tires or drive alot of highway? If not then 3.55s would absolutely be in your interest.


Edit: or do the XJs with tow packages have 3.73s?

 

Surprised that nobody has mentioned yet that some 1996s came with 29-spline C8.25s. It changed mid-year. Only way to know is to look.

To mister OP: Build sheet is fun but ultimately useless, unless you've had the XJ since new. The only way to know what the gearing ratio is for certain is to crack open the diff and look.

Otherwise, 4.0L with manual transmission only came with 3.07:1, ever. 4.0L with automatic transmission was 3.55:1 after about 1988 or 1989. 3.73:1 and some other interesting ratios were earlier 4.0Ls and the 2.8L. 2.5L gasser had different ratios again, but I assume we're not talking about these.